Question

Deferred revenue is revenue that is a.not earned and the cash has not been received b.not earned but the cash has been received c.earned but the cash has not been received d.earned and the cash has been received

Answer 1

Answer:

The answer is B. not earned but the cash has been received

Explanation:

Deferred revenue is when the money for a service has been received but the service has not been discharged. Deferred revenue is classified as a liability. Deferred revenue account decreases by the same amount with revenue as revenue is earned.

For example, a customer has paid for a year subscription to magazines. This money is an deferred revenue because the service will last for a year

Answer 2

Answer:

The correct answer is letter "B": not earned but the cash has been received.

Explanation:

Deferred Revenue is accrued compensation that a company receives for products or services that it has not yet provided or distributed. Another name for the deferred revenue is unearned revenue.  Although regular payments for services rendered are reported as revenue on the company's income statement, deferred income is recorded as a liability until the product is delivered.