Deferred Revenue is a liability on a company's balance sheet that represents money received for goods or services that have not yet been delivered or performed. This means the company has an obligation to provide those goods or services in the future. When a customer pays in advance, the company records this payment as Deferred Revenue until it fulfills its part of the transaction. Once the service is provided or the product is delivered, the company recognizes the revenue, moving it from the liability section to the income statement.