A great irony of accounting on an accrual basis is that it lets companies report revenue that they do not have and actual cash that they have not earned. Accounts receivable and deferred revenue ...

When you hear about the term "deferred revenue" and think about a typical list of financial statements, you might assume this goes on the income statement like other revenue received. However, ...

Whether you are a small business owner trying to get an accurate picture of cash flow or a Main Street investor examining financial statements to pick stocks, understanding deferred revenue can help ...

How does a company account for cash payments received in advance of delivering its goods or services? Under the "accrual-basis accounting" rules used by most companies, advance payments can't be ...

Source: www.LearningVideo.com via Flickr. What is the difference between deferred revenue and unearned revenue? Well, the short answer is that both terms mean the same thing -- that a business has ...

Deferred revenue is recorded when payment is received before services are delivered. It helps companies show a more accurate financial state under GAAP rules. Growing deferred revenue typically ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...