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This article's title is likely to conjure up images in the reader's mind. How could there be “a contest” between these current and deferred revenues in the eye of the new venture owner? Clearly, any new business would rather experience revenue generation currently than having to defer that revenue. From an accounting perspective, however, it is imperative to define each term, as the connotation generally associated with the latter term is not consistent with the way in which accountants have defined it.

Current revenues are exactly that: revenues earned for delivery of a service at the present time. Any restaurant patron is familiar with the process. One enjoys the meal, and once the delivery and consumption of that meal have been completed, one pays the ...

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