Question

Given 300 of revenue and600 of deferred revenue, what is the contract price paid in advance?

1) $900
2) $300
3) $600
4) $3000

Answer 1

To find the contract price paid in advance, subtract the deferred revenue from the total revenue. In this case, the contract price paid in advance is $300.

Step-by-step explanation:

To find the contract price paid in advance, we need to subtract the deferred revenue from the total revenue. In this case, the total revenue is $300 and the deferred revenue is $600. So, the contract price paid in advance is $300 – $600 = -$300. This means that the company has received $300 less than the total revenue, indicating that there is a negative contract price paid in advance.

Therefore, the correct answer is 2) $300.