Deferred in the case of revenues means collected in advance of being earned and accrued in the case of revenues means not yet collected.

Question

Quizplus · Accepted Answer

Deferred revenue refers to money received by a company for goods or services yet to be delivered or performed, thus it is collected in advance. Accrued revenue refers to revenue that has been earned by providing goods or services but has not yet been collected from the customer.

Deferred in the Case of Revenues Means Collected in Advance