Deferred Revenue

What is Deferred Revenue?

Sid Arora

Reviewed by

Sid Arora

Expertise: Investment Banking | Hedge Fund | Private Equity

Updated:

April 12, 2022

Deferred Revenue is an accounting concept which refers to any revenue received and accounted for, but for which the corresponding goods or services have not yet been delivered. Therefore, this is a liability on the Balance Sheet as it is represents something which is owed (the good or service), but it is also added onto Revenue on the Income Statement.

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Sid Arora is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Currently an investment analyst focused on the TMT sector at 1818 Partners (a New York Based Hedge Fund)... This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.