B is corrent. The requirement is to determine whether a returnable cash deposit should be recorded as a liability if received from a customer or an employee. Per ASC Topic 605, liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. Returnable cash deposits by customers and employees meet the definition of a liability.
A is incorrect. Per ASC Topic 605, liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. Returnable cash deposits by customers and employees meet the definition of a liability.
C is incorrect. Per ASC Topic 605, liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. Returnable cash deposits by customers and employees meet the definition of a liability.
D is incorrect. Per ASC Topic 605, liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. Returnable cash deposits by customers and employees meet the definition of a liability.
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