Current Deferred Income

<h2 >Deferred revenue is similar to customer deposits. A customer deposit occurs when a company asks a customer to pay a percentage of the purchase price of a product or service when placing an order. Some businesses treat deferred revenue and customer deposits as one and the same, using the two accounts interchangeably. However, customer deposits are commonly linked to product- or service-based companies or those that offer both, while deferred revenue is most commonly linked to service-based businesses and is typically collected for specific time increments. An example would be a magazine publishing company collecting payments for one- or two-year subscriptions in advance.</h2>