Using the alternative treatment, deferred revenue is recorded initially as a(n) Revenue.
This is further explained below.
What is Revenue?
Generally, Revenue is the entire amount of money earned through the sale of products and services connected to the principal activities of the firm. In accounting, revenue refers to the total profits earned.
The term "commercial income" is synonymous with "sales" and "turnover" in the business world. Interest, royalties, and many other fees may all be sources of income for certain businesses.
In conclusion, When the alternative treatment is used, the delayed income is originally reported as revenue.
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