Deferred Revenue - Meaning, Accounting, Recognition, Examples
Deferred Revenue - Meaning, Accounting, Recognition, Examples
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In intro accounting class we learn the difference between deferred and accrued revenues with our revenue recognition principle, which helps us adhere to accrual accounting. Deferred revenues literally means we are deferring the revenue to a later point in time, which means we collected cash first. Accrued revenues have to be the opposite, where we recognize revenue first snd collect cash later. #accounting #study #major #explained
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