Deferred Revenue
/dɪˈfɜːrd ˈrɛvənjuː/
Definitions
- (n.) Amounts received by a business before goods or services are delivered, recognized as a liability until earned.
The company's balance sheet showed a significant deferred revenue liability from advance customer payments.
Forms
- deferred revenues
Related terms
Commentary
Deferred revenue reflects the timing difference between cash receipt and revenue recognition under accrual accounting principles; precise contract terms determine its recognition.
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