Deferred revenue: an accounting term that deals with a specific type of timing difference between getting paid by your customer and providing goods or services in return. This short video starts with real-life examples of deferred revenue in companies in very different industries, we subsequently discuss a common definition of deferred revenue, talk about why this is such a great business model, and review the deferred revenue accounting journal entries.

⏱️TIMESTAMPS⏱️
00:00 Introduction to deferred revenue
00:27 Deferred revenue examples
00:59 Deferred revenue: giftcards
01:31 Deferred revenue: subscription services
01:51 Deferred revenue: passenger tickets and frequent flyer miles
02:40 Deferred revenue definition
03:01 Deferred revenue business model
03:25 Deferred revenue journal entries

Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!