Doctor Accounting : Chapter 18 in Collaboration with SAA Global Education

Do you know what is prepaid revenue? What is it used for?

Watch Dr Accounting chapter 18 to learn more about the world of Accounting with us!

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Video Transcript

Welcome to Doctor Accounting chapter eighteen.
n this series, I would like to share you what is a Prepaid Revenue.
Prepaid revenue is also known as a Deferred Revenue. It is an obligation on the company’s balance sheet that receives advanced payment, because it owes the customers product or services.
An examples of Prepaid Revenue are Subscription that is being paid in advance, Insurance that is being paid in advance, Rental that is being paid in advance.
In my next series, I would like to share with you on Accrued Revenue, so stay tuned!