Difference between deferred revenue and unearned income

Question

Accepted Answer

Deferred revenue and unearned income are terms used interchangeably to describe the same concept.

Deferred revenue and unearned income refer to revenue received in advance for goods or services that have not yet been delivered or provided.
Both terms represent a liability on the company's balance sheet until the revenue is recognized.
Deferred revenue is commonly used in the software industry, where customers pay upfront for a subscription or license that spans multiple periods.
Unearned income is often used in the context of rental properties, where tenants pay rent in advance for a future period.
Once the goods or services are delivered or provided, the deferred revenue or unearned income is recognized as revenue on the income statement.
The recognition of revenue is typically done over the period in which the goods or services are delivered or provided.
Deferred revenue and unearned income are important for accurate financial reporting and revenue recognition.

Accepted Answer

This is the biggest cheapest company in the world called British Telecom. Can you tell me the difference between receivables and deferred revenue? HR are beggars like bosses, there is a philosophy in conceptual framework called either cash basis or accrual basis! Historical is not applicable here. Dividends delayed and interest receivable? These are adjusting events into receivables. So where is the unearned revenue when revenue can be recognised still. Ill fire you all in HR!

Accepted Answer

Deferred income (also known as deferred revenue, unearned revenue, or unearned income) is, in accrual accounting, money received for goods or services which has not yet been earned.

Difference between deferred revenue and unearned income

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