Account Manager Assistant Question:

Described deferred revenue?

Assistant Account Manager Interview Question
Assistant Account Manager Interview Question

Answer:

Deferred revenue is not yet revenue. It is an amount that was received by a company in advance of earning it. The amount unearned (and therefore deferred) as of the date of the financial statements should be reported as a liability. The title of the liability account might be Unearned Revenues or Deferred Revenues.


Previous QuestionNext Question
Define assets?What is liability account?