GraphX Solution Interview Questions and Answers

Deferred revenue is revenue that has been received by a company, but has not yet been earned.

• Deferred revenue is a liability on the balance sheet until the revenue is earned.

• It typically arises when a company receives payment in advance for goods or services that have not yet been provided.

• As the revenue is earned, it is recognized on the income statement.

• Examples include magazine subscriptions, software licenses, and ...read more

Prepaid expenses are costs that have been paid in advance but have not yet been incurred.

• Prepaid expenses are considered assets on a company's balance sheet.

• They are expenses that have been paid for but have not yet been used or consumed.

• Examples include prepaid rent, insurance premiums, and prepaid subscriptions.

• As the prepaid expenses are used or consumed, they are gradually recognized as expenses on the income state