Deferred Revenue refers to income or income items a business receives but has...
Revenue that is considered a liability until it becomes relevant to the business at hand, such as a payment received for work that has not yet been performed. opposite of deferred charge.
Money received from customers in advance of performance of revenue activities. This amount will be spent on goods or services, or will be repaid to the customer.
A liability that arises when a customer pays for goods or services before delivery is complete; for example, a one-year service contract billed in advance. Under accrual accounting, revenue must be booked when the obligation is fulfilled, not when cash is paid or received.
Money that the organization has received, but has not yet earned as of the closing date on the balance sheet. The amount is carried as a liability until the organization provides the goods or services for which the money was received.
A liability resulting from the receipt of cash before the recognition of revenue.
Resource inflows that do not yet meet the criteria for revenue recognition. Unearned amounts are always reported as deferred revenue. In governmental funds, earned amounts also are reported as deferred revenue until they are available to liquidate liabilities of the current period.
