标题: Difference between unearned revenue and deferred revenue [打印本页] 作者: hw0799 时间: 2011-7-13 16:41 标题: Difference between unearned revenue and deferred revenue
Can Anyone tell me the difference between unearned revenue and deferred revenue (if there is any)
And if so, Plz give a clear example of both.作者: wizofoz 时间: 2011-7-13 16:41
like when you get money for some service you are going to service in the future.
say i gave you 20$ to mow my lawn next week, that's your unearned/deferred revenue until you can establish recognition of service/ do it.
don't confuse it with accrued revenue, which is service you have done but haven't received money for yet.作者: spreads 时间: 2011-7-13 16:41
accrued revenue = booked revenue on income statement but have not earned it.
deferred revenue = earned revenue but have not booked it.作者: jarobi04 时间: 2011-7-13 16:42
what is unearned revenue?
thommo77 Wrote:
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> accrued revenue = booked revenue on income
> statement but have not earned it.
>
> deferred revenue = earned revenue but have not
> booked it.作者: economicz 时间: 2011-7-13 16:42
The classic example is magazine subscriptions. You get paid up front, but you owe 11 more magazines over the next year.
I believe cash is increased and unearned revenue(liability) is increased.
Hope that helps作者: chaojimali 时间: 2011-7-13 16:42
thommo77 Wrote:
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> accrued revenue = booked revenue on income
> statement but have not earned it.
>
> deferred revenue = earned revenue but have not
> booked it.
Don't know why no one is not correcting this.
Accrued revenue, earned revenue increased accounts receivable, billed revenue. Does not show up all that often.
Deferred/Unearned revenue, revenue that you have been paid on but have not fully delivered the service. In good times companies will place a lot of revenue in unearned category to harvest it in the bad times.
