A deferral is an adjustment for the receipt of cash in advance of providing services.

Name: A deferral is an adjustment for the receipt of cash in advance of providing services.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

A deferral occurs when a company receives cash from a customer in advance of providing goods or services. This cash is recorded as a liability on the balance sheet until the goods or services are delivered, at which point the liability is removed and revenue is recognized.

A Deferral Is an Adjustment for the Receipt of Cash