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Home > QFINANCE Dictionary > Definition of deferred credit

Definition of

deferred credit

Accounting

money received but not yet recorded as income revenue received but not yet reported as income in the profit and loss account, for example, payment for goods to be delivered or services provided at a later date, or government grants received for the purchase of assets. The deferred credit is treated as a credit balance on the balance sheet while waiting to be treated as income.

Related definitions of "deferred credit"

deferred credit - Related Articles

  • Exporting Against Letters of Credit

    Best Practice

    for a credit available against time drafts or by deferred payment. If the seller is a relationship customer, the nominated bank may be willing to advance funds to him prior to receipt of payment from the issuing bank. It is even likely the seller can sell the receivable to the nominated bank without recourse (similar to the silent confirmation structure described before, but without the commitment in advance) and take the receivable off their books
    By Buddy Baker

  • Understanding the UCP600

    Best Practice

    A few minor changes are worth noting. Firstly, the UCP600 now states that a letter of credit that is available by deferred payment implicitly authorizes the bank it is available with to discount, i.e., to pay immediately, with interest deducted from payment, if requested to do so by the beneficiary
    By Buddy Baker

  • Assessing Cash Flow and Bank Lending Requirements

    Checklists

    of the performance of a business better than the profit margins. Sales and costs and, therefore, profits do not necessarily coincide with their associated cash inflows and outflows. Even though a sale has been secured and goods delivered, payment may be deferred as a result of credit to the customer, yet suppliers and staff still have to be paid and cash invested in rebuilding depleted stocks

  • Islamic Modes of Finance and the Role of Sukuk

    Best Practice

    sale contract where the price is based on a cost plus profit margin formula. The contract has been modified to include bai ajil (deferred payment sale) and renamed as “Murabaha to the Order of the Purchaser.” According to the new contract, the bank’s customer orders the purchase of a prescribed
    By Abdel-Rahman Yousri Ahmad

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Definitions of ’deferred credit’ and meaning of ’deferred credit’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’deferred credit’ and other financial terms with our online QFINANCE Financial Dictionary.

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