deferred revenue expenditures

Early payment or unearned income, recorded on the recipient’s balance sheet as a liability, till the services have been reduced or goods have been transported. Delayed revenue is a liability because it is related to revenue that has not yet been earned, but signifies goods or services that are owed to the customer. As the product or service is delivered over time, it is recognized as revenue on the income statement.

Capital and Revenue Items

Capital and Revenue Items and goods Learning Objectives: Define explain and give examples capital and revenue expenditures, receipts, payments, profits and losses. What is the difference between capital and revenue expenditures? What are the exceptions to the general rule of capital and revenue expenditures?