deferred income
Revenue recognized later
Deferred income is money received before the goods or services it pays for have been delivered.
A magazine subscription paid in full creates deferred income for the publisher, recognized gradually as issues are sent.
Also called unearned revenue, it appears as a liability on balance sheets until earned: The company reported $2 million in deferred income from advance ticket sales.
- subscription modelRecurring payment arrangement
- advance paymentPayment made beforehand
- liabilityLegal or financial obligation
- service contractAgreement for ongoing upkeep
- depositPlace for safekeeping
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