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Deferred income, in accrual accounting, (e.g. advance payment received from a client) is, according to revenue recognition, revenue not earned until the delivery of goods or services, which until then, is still owed to the payer, hence remaining a liability. For example, a company receives an annual software license fee paid out by a customer upfront on January 1. However the company's fiscal year ends on May 31. So, the company using accrual accounting adds only five months worth (5/12) of the fee to its revenues in profit and loss for the fiscal year the fee was received. The rest is added to deferred income (liability) on the balance sheet for that year. Deferred income, sometimes referred to as deferred revenue or unearned revenue, shares characteristics with accrued expense with the difference that a liability to be covered later is cash received FROM a counterpart, while goods or services are to be delivered in a latter period, when such income item is earned, the related revenue item is recognized, and the same amount is deducted from deferred revenues. From Wikipedia under the
GNU Free Documentation License How does accumulated depreciation, accrued liabilities, and deferred income tax changes affect the cash? Q. flow statement? thanks =) Asked by ben_ev0lent - Mon Oct 2 21:27:50 2006 - - 5 Answers - 0 Comments A. Wow, all those answers are wrong!!! Accumulated depreciation doesn't affect the cash flow statement BUT depreciation and gain/loss on disposal do. Depreciation is added to net income as a non-cash item, gains on disposal are deducted from net income (minus any proceeds from the sale of an asset) and losses on disposal are added back to net income. Increases in liabilities are increases in cash flows while decreases in liabilities decrease cash flows. Increases in assets decrease cash flow while decreases in assets increase cash flow. Accrued liabilities are...liabilities. Deferred income taxes can be an asset or liability. Answered by porkchop - Tue Oct 3 14:54:32 2006 How do i invest Pre-taxable income into a new business venture, or subsiduary? Does the IRS frown upon this? Q. I'm looking to start a second company and was wondering if i could invest pre-taxable income into this venture and defer paying taxes until that second could repay the loan to my first company. I'm not looking to be shady just wondering if there is anyway if to legimately invest in a new venture with gross income dollars. Asked by jassdsu - Tue Sep 9 15:16:01 2008 - - 3 Answers - 0 Comments A. Won't work. Don't try. Answered by wartz - Tue Sep 9 15:19:35 2008 How do you compute your deductible and non-deductible IRA contributions over many years?
Q. For many years I have contributed to my IRA. At first the contributions were deductible...now they are not. Predumably anything above and beyond my contributions is tax-deferred income. How do I figure out the right solution that matches what the IRS has on record? Before too long, I plan to retire and don't plan on hiring a CPA to try to figure all of this out. Asked by Ranger 6 - Mon Jan 2 23:29:10 2006 - - 2 Answers - 0 Comments A. Yous should have filed a form 8606 every year you made a nondeductible IRA contribution and based on those 8606 forms you should be able to determine the total of your nondeductible IRA contributions. Answered by Glenn_11 - Tue Jan 3 00:19:57 2006 From Yahoo Answer Search: "Deferred income"  news.google.com IT News Online ... Trade receivables 15800 26775 Unbilled accounts receivable 5055 4053 Other accounts receivable and prepaid expenses 5214 5753 Deferred income taxes 714 ... and more » news.google.com Daily Times According to the official sources, WB and ADB are demanding that the government recover the full cost from consumers to bridge PEPCO's income -expenditure ... and more » news.google.com Trading Markets (press release) ... including goodwill and a valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ... and more » From Google News Search: "Deferred income" |
