Financial Glossary
Deferred Revenue
What is Deferred Revenue?
Deferred or unearned revenue is money a business receives for goods or services yet to be delivered. It is recorded as a liability until the business meets its obligations.
💡 Examples of Deferred Revenue
- Subscriptions: Payments are received in advance for annual memberships.
- Service Contracts: Prepaid maintenance services.
- Prepaid Goods: Deposits for future product deliveries.
📌 Related: Accrual Accounting | Balance Sheet
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