Earned revenue refers to the income that a business recognizes when it has delivered goods or services to its customers, signifying that the earning process is complete. This concept is closely tied to the timing of revenue recognition, which is crucial for understanding installment sales and deferred revenue. In installment sales, earned revenue may be recognized over time as payments are received, while deferred revenue reflects money received before goods or services are provided, impacting when revenue can be considered earned.
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