Which types of liabilities do not represent obligations on the firm to transfer assets in the future, but are past transactions being postponed from the income statement until future periods?

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24 July, 09:07

Which types of liabilities do not represent obligations on the firm to transfer assets in the future, but are past transactions being postponed from the income statement until future periods?

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Irvin Hendricks · Answer 1

Advanced / Deferred / Unearned Income

Explanation:

Advanced / Deferred / Unearned Income is an obligation which is postponed from the income statement and and it does not require any future asset transfer to settle. It is recognized and settled in the yearly income. it is adjusted by an period end adjusting entries every year.