Deferred Credit Definition
Deferred Credit refers to income that is received in advance of it being earned. Therefore Deferred Credit is not immediately reported as income, it is a liability on the balance sheet of the company. Revenue received but not earned is typically deferred revenue, unearned revenue, or customer advances such as subscription fees. Revenue is deferred until is not fully earned and is matched with the related expenses. For example, a publishing company may defer income from newspaper subscriptions until the newspapers are shipped out.