What Are Deferred Liabilities In Accounting

Deferred Liabilities are the debts or obligations payable by the business to outsiders of the business as the company is not earned the revenue but the payment is received from the clients. Examples are Unearned Revenue or Revenue Received In Advance such as Commission Received In Advance, Fees Received In Advance, etc.

If the payment is received for a period of one year, then it is considered as a Current Liability but if it is received for a period more than one year, then it is called as Long-Term Liability on the Balance Sheet.