Bioelectronics Corp (BIEL)

[jour_trader]

No, that is incorrect. It is a liability if it is deferred revenue, not an asset. This is really basic accounting. Saying otherwise doesn’t make it accurate. Here is insight on the same accounting mistake:

“A common mistake
An error made by many entrepreneurs is to offset deferred revenue with accounts receivable. Some companies record the entire contract value in accounts receivable and deferred revenue to show the potential economic impact of future contracts on the present value of the business. This is not in accordance with GAAP. Deferred revenue should not be used as a double entry account along with accounts receivable to reveal contract values.”

https://www.indinero.com/blog/the-key-to-accrual-accounting-recording-deferred-revenue