Final answer:
The statement in the question is false. Deferred revenue is money received for services or goods not yet delivered and is recorded as a liability. Accrued revenue is for goods or services provided but not yet paid for and is recorded as an asset.
Step-by-step explanation:
The statement that deferred revenue has never been recorded is false. The correct distinction is that accrued revenue has been earned but not yet received, and therefore is recorded as an asset. Deferred revenue, on the other hand, has been received but not yet earned, and is recorded as a liability.
When a company performs a service or delivers a product, revenue is earned. If the cash is received before the service is performed or goods are delivered, this is considered deferred revenue, which is a liability because the company owes the service or product to the customer. Conversely, if a service is performed or goods are delivered before the payment is received, this is considered accrued revenue, an asset because the company has a right to receive payment for the service or goods provided.
In summary, deferred revenue is cash received before services or goods are delivered, whereas accrued revenue is revenue earned for services provided or goods sold but not yet paid.