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.
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deferred liability

A liability that usually would have been paid but is now past due.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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COA noted that instead of classifying the excess health insurance payments under the Other Deferred Credits account, COA considered the excess amount as income.
The deferred credits can be claimed under the following schedule: 50% of the deferred balance in 2013, 75% of the remaining deferred balance in 2014, and the remaining balance in 2015.
Current and Accrued Liabilities $803,138.00 Total Current and Accrued Liabilities $8,366,288.00 DEFERRED CREDITS Consumer Adv.
"Other liabilities" and deferred credits were 7.1 percent higher, climbing to $1.1 billion.
"To correct this error, the company will now record construction allowances as deferred credits, which will be amortized as a reduction of rent expense over the lease term." Prior to the accounting change, earnings per share for the fourth quarter were $1.76 per share, compared with $10.84 per share for the same period last year.