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Deferred Liability
(redirected from Deferred revenue)

   Also found in: Wikipedia 0.01 sec.
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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In 2007, the company reported record third-quarter profit increases of 65 percent in part by deferred revenue from a Windows Vista upgrade program.
3 million, and the company ended the quarter with deferred revenue of $108 million.
The following example analyzes changing the method of accounting for deferred revenue from an impermissible method to a permissible method.
 
 
 
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