# Deferred Revenue

*Accounting & Reporting — Finicade finance glossary*

Deferred revenue is cash collected before the service is delivered, recorded as a liability until it's earned. Annual software subscriptions are the classic case. It's the rare liability investors like, because it represents customers who have already paid: growing deferred revenue signals genuine forward demand and funds operations without borrowing.

**Also known as:** unearned revenue, contract liability, deferred income

**Related terms:** [Revenue Recognition](https://finicade.com/glossary/revenue-recognition), [Revenue](https://finicade.com/glossary/revenue), [Accrual Accounting](https://finicade.com/glossary/accrual-accounting), [Working Capital](https://finicade.com/glossary/working-capital), [Cash Flow](https://finicade.com/glossary/cash-flow)

Source: https://finicade.com/glossary/deferred-revenue