deferred liability

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Deferred Liability

1. Money that a company receives from a customer as prepayment for some good or service. A deferred liability is listed on a balance sheet as a liability until the good or service is delivered. This is because the company would have to return the money if it does not keep its end of the bargain as promised. A deferred liability is also called a deferred credit or deferred revenue.

2. See: Past-Due Payment.

deferred liability

A liability that usually would have been paid but is now past due.
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This study found that changes in current deferred revenues ([DELTA]DRC) are positively associated with sales growth, gross profit margin, profit margin and return on assets of the next two years.
said its second quarter results included record highs in net revenues, deferred revenues, active clients and number of clients electing multi-year, non-cancelable service periods.
recognition of the remaining USD6, of deferred revenues will effectively reduce ProMetic's current liabilities by that amount.
Deferred revenues could represent upfront payments for services or products that have not yet been delivered, or payment for delivered goods or services sold as part of a multiple-element arrangement that cannot be accounted for separately from undelivered items included in the same arrangement.