Are these shown as assets and liabilities on the balance sheet depending on how long is left on the contract
Tell us more.
Or even something......
Not 100% sure what you're asking, but it's possible that you're correct. It's also possible that you're not. Depends what the question is.
The company acts as middle man for broadband contracts over various lengths. Do they record the remaining payments they have to make as liabilities on the Balance Sheet and subsequently receipts from Customers as assets.
Ok so a customer signs a 3 year contract in the last month of the Financial Year. Obviously they are bought into the contract for the next years. Is this remaining 35 months of payments an asset to the company but also as they are acting as middle man and paying for eg Talk Talk, a liability as well
How would you account it if you were a coal merchant with a two year contract to supply a tonne of coal a month to a customer in Newcastle.
It's the same with your telecoms contract.
Some of these enquiries are like p*****g in the wind.
You want to ask more but, why should you?