Deferred Revenue Explained: A Complete Guide

Deferred Revenue Explained: A Complete Guide

Deferred revenue, also known as unearned revenue, is a liability on a company’s balance sheet representing advance payments received for products or services yet to be delivered or performed. It’s a crucial accounting concept that ensures revenue is recognized at the appropriate time, aligning with the principle of accrual accounting. What is Deferred Revenue?Deferred revenue, … Read more