deferred revenue

Definition

Revenue that is considered a liability until it becomes relevant to the business at hand, such as a payment received for work that has not yet been performed. opposite of deferred charge.

Use deferred revenue in a sentence

I told them that it was deferred revenue and we could not use it until we had finished the job we were doing.

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The deferred revenue did not bring joy to the team who still had two projects to finish before the end of the month.

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You may need to start taking into account your deferred revenue if you want to get an accurate sense of where you stand.

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