B is corrent. ASC Topic 605 specifically identifies deposits and prepayments for goods or services to be provided at a future time ("unearned revenues") as liabilities. In this case, the goods are to be manufactured and delivered within 6 months. Because the liability will be settled within the next year, it should be classified as current.
A is incorrect. ASC Topic 605 specifically identifies deposits and prepayments for goods or services to be provided at a future time ("unearned revenues") as liabilities. In this case, the goods are to be manufactured and delivered within 6 months. Because the liability will be settled within the next year, it should be classified as current.
A is incorrect. ASC Topic 605 specifically identifies deposits and prepayments for goods or services to be provided at a future time ("unearned revenues") as liabilities. In this case, the goods are to be manufactured and delivered within 6 months. Because the liability will be settled within the next year, it should be classified as current.
D is incorrect. ASC Topic 605 specifically identifies deposits and prepayments for goods or services to be provided at a future time ("unearned revenues") as liabilities. In this case, the goods are to be manufactured and delivered within 6 months. Because the liability will be settled within the next year, it should be classified as current.
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