Difference between unearned revenue and deferred revenue revenue

hw0799

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.

economicz

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

chaojimali

thommo77 Wrote:
-------------------------------------------------------
> 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.

jarobi04

what is unearned revenue?
thommo77 Wrote:
-------------------------------------------------------
> accrued revenue = booked revenue on income
> statement but have not earned it.
>
> deferred revenue = earned revenue but have not
> booked it.

wizofoz

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.

spreads

accrued revenue = booked revenue on income statement but have not earned it.

deferred revenue = earned revenue but have not booked it.