What is deferred revenue?
A liability recorded when a company receives payment for goods or services it has not yet delivered. Deciding whether customer payments represent revenue, deposits, or deferred revenue is one of the determinations a company faces when reconstructing its financial records.
Where you will use it: this term comes up in the Applied AI for Finance and Accounting course, and the full course glossary collects every term in one place.
Related terms
From the free Applied AI for Finance and Accounting course by Devon Coombs, CPA, MBA.