You might not realize it, but every time you sign a credit card slip for your lunch, you are executing a promise to pay. If you are paying in advance for a catered employee luncheon to be delivered ...

The exchange of goods or services for money isn't always simultaneous in the business world. When a service is provided without immediate compensation or money is received before goods are shipped, ...

Deferred revenue is recorded when payment is received before services are delivered. It helps companies show a more accurate financial state under GAAP rules. Growing deferred revenue typically ...

Discover what unearned revenue is, how it’s recorded as a liability, and how it gets reported as income. Learn about its role ...

The best way to explain deferred revenue is using the example of a magazine subscription. Let's say that you sign up for a one-year subscription to a magazine for $12. The magazine company will get ...

Source: www.LearningVideo.com via Flickr. What is the difference between deferred revenue and unearned revenue? Well, the short answer is that both terms mean the same thing -- that a business has ...

These days, it seems as if everyone wants to be a technology company—or to merge with one. Global merger-and-acquisition (M&A) activity through December 2015 was at a record high, with acquisition ...

Our Federal Tax Group discusses the tax treatment of deferred revenue or advance payments in M&A transactions. The tax treatment of deferred revenue differs from the treatment for financial accounting ...

Whether you are a small business owner trying to get an accurate picture of cash flow or a Main Street investor examining financial statements to pick stocks, understanding deferred revenue can help ...

I work with a lot of companies, and sooner or later the topic of deferring revenue always comes up. Some companies do it, some don’t. Those that do tend to be happy with the process and accuracy of ...

The magic of the SaaS business model relies on the nature of its recurring subscription model to establish and maintain a stable revenue profile. Furthermore, many SaaS offerings require annual ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...