Here is the meaning,
What Does Deferred Revenue Mean?
A liability account used to collect deposits and other cash receipts prior to the completion of the sale.
A liability account used to collect deposits and other cash receipts prior to the completion of the sale.
Investopedia explains Deferred Revenue
Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, a software company sells and receives payment for a computer program before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.
Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, a software company sells and receives payment for a computer program before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.
Source: Investopedia.com
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