Question

Is Deferred revenue an asset?

Answer 1

Deferred revenue is recognised as a liability under accrual accounting as the revenue is not recognised due to the service or product not being delivered.

Also read:

• Difference Between Capital Expenditure and Revenue Expenditure
• Difference Between Capital Reserve and Revenue Reserve
• GAAP Generally Accepted Accounting Principles
• Difference Between GAAP and IFRS

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