Is deferred revenue income?

No. Deferred revenue is a liability until earned. Unearned revenue is another name for the same account.

Is accrued revenue a receivable?

When the right to bill is unconditional — only the passage of time remains — accrued revenue is a receivable. If billing depends on further performance it is a contract asset.

Deferred revenue vs accrued revenue

Deferred revenue is cash billed or received before the work is done, a liability; accrued revenue is work done before it is billed, an asset — they are the same timing gap in opposite directions.

Each, defined

Deferred revenue

Deferred revenue — Consideration received, or unconditionally due, before the goods or services are transferred — a liability until the performance obligation is satisfied. ASC 606 calls it a contract liability.

Deferred revenue in the glossary

Accrued revenue

Accrued revenue — Revenue earned and recognized before it is invoiced. ASC 606 splits it: an unbilled receivable where only time stands between it and payment, a contract asset where the right still depends on further performance.

Accrued revenue in the glossary

Side by side

Deferred revenue and Accrued revenue compared
	Deferred revenue	Accrued revenue
Billing happens	Before the work	After the work
Balance sheet	Liability	Asset
Typical case	Annual SaaS billed up front	Consulting billed monthly in arrears
Monthly entry	Debit deferred revenue, credit revenue	Debit unbilled receivable, credit revenue

One contract, billed at either end

A $24,000 annual contract billed up front leaves $22,000 of deferred revenue after its first month. The same contract billed in arrears at year-end would carry $2,000 of accrued revenue after its first month instead.

One contract, billed at either end
After month	Revenue recognized to date	Deferred if billed up front	Accrued if billed in arrears
Jan 2026	2,000.00	22,000.00	2,000.00
Feb 2026	4,000.00	20,000.00	4,000.00
Mar 2026	6,000.00	18,000.00	6,000.00
Apr 2026	8,000.00	16,000.00	8,000.00
May 2026	10,000.00	14,000.00	10,000.00
Jun 2026	12,000.00	12,000.00	12,000.00

How they relate

Revenue is recognized as the work is delivered under ASC 606, whatever the billing schedule. When billing runs ahead of delivery the gap is deferred revenue; when delivery runs ahead of billing it is accrued (unbilled) revenue.

Both shrink to zero as the billing and the delivery catch up with each other, and both must be reconciled to contracts each month.

Questions

Is deferred revenue income?: No. Deferred revenue is a liability until earned. Unearned revenue is another name for the same account.
Is accrued revenue a receivable?: When the right to bill is unconditional — only the passage of time remains — accrued revenue is a receivable. If billing depends on further performance it is a contract asset.

See it computed

Worked through: the calculators, the journal entries and the tools that use these terms.

Definitions are the glossary’s, generated from the same documents. Figures in the examples are computed by tested functions, not typed. General information for US companies under US GAAP, not accounting or tax advice.