A deferral:.a. exists when a company receives cash after recognizing the associated revenue. b. exists when a company receives cash before recognizing the associated revenue. c. exists when a company receives cash at the time the associated revenue is recognized.

b. exists when a company receives cash before recognizing the associated revenue

Explanation:

When Cash is collected in advance for a service yet to be rendered or goods yet to be delivered to the customer, the entries to be posted are debit to cash account and a credit to deferred revenue.

When the revenue is earned, it is recognized by crediting revenue and debiting deferred revenue with the amount earned.

Hence a deferral exists when a company receives cash before recognizing the associated revenue.