What Is Deferred Revenue?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Deferred Revenue is an accounting concept which refers to any revenue received and accounted for, but for which the corresponding goods or services have not yet been delivered.

Therefore, this is a liability on the Balance Sheet as it is represents something which is owed (the good or service), but it is also added onto Revenue on the Income Statement.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.