What I'd deffered and unbilled

Question

Accepted Answer

Deferred revenue is revenue that has been received but not yet earned, while unbilled revenue is revenue that has been earned but not yet invoiced.

Deferred revenue is recognized on the balance sheet as a liability until it is earned.
Unbilled revenue is recognized on the income statement as revenue even though it has not been invoiced yet.
Examples: A company receives payment for a subscription service that will be provided over the next 12 months - this is deferred revenue. A company provides a service but has not yet sent the invoice to the customer - this is unbilled revenue.