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Deferred revenue is classified as a liability on a company's balance sheet. It represents money received from customers for goods or services that have not yet been delivered or performed. This means the company has an obligation to fulfill these services or deliver these products in the future. As the services are provided or goods are delivered, the deferred revenue is recognized as earned revenue on the income statement.

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2w ago

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Deferred revenue is revenue that is?

Deferred.


How do you account for subscription sales?

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What type of an account is deferred commissions?

Deferred commissions are considered a liability account on a company's balance sheet. They represent costs incurred for sales commissions that have not yet been recognized as expenses because the related revenue has not been earned. This account reflects the obligation to pay these commissions in the future once the revenue is realized, aligning with the matching principle in accounting.


What is the meaning of deferred revenue expenditure?

an deferred revenue is known as accounting


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What Did you mean by deferred revenue tax


When a business entity receives payment before delivering goods what is the unearned revenue account?

In accrual-based accounting, you would not recognize revenue before delivering the goods. You would typically have a liability account for "deferred revenue."


Deferred revenue expenditure?

Deferred expenditure refers to expenses incurred which do not apply to the current accounting period. Instead, they are debited to a 'Deferred expenditure' account in the non-current assets area of your chart of accounts. When they become current, they can then be transferred to the profit and loss account as normal.


What type of account is unearned revenue?

Unearned Service Revenue is a Liability account.


What is the entry for deferred revenue?

dr Bank/Accounts Receiveable (A) xxx cr Deferred Revenue (L) xxx


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