What Is a Deferred Month? In the commodities futures market, the deferred month futures contract is the contract whose expiration date is farthest in the future. For example, if a given futures contract has expiration dates in January, February, and March, the deferred month contract would be the one expiring in March. Key Takeaways A
What Is Deferred Revenue? Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to be delivered or performed in the future. The company that receives the prepayment records the amount as deferred revenue, a liability, on its balance sheet. Deferred revenue is a liability because it reflects
What Is a Deficiency? A deficiency is the numerical difference between the amount of tax that a taxpayer, or taxpaying entity, reports on a tax return and the amount that the Internal Revenue Service (IRS) determines is actually owed. The term only applies to shortfalls and not to surpluses. Taxpayers are notified of deficiencies via
What Is a Deficiency Balance? A deficiency balance is the net difference between the amount a borrower owes on a secured loan and the amount the creditor receives after selling the collateral that secures the loan. Typical examples of when a deficiency balance might occur include after a lender repossesses a car because the borrower has
A deficiency judgment is a court ruling against a debtor who is in default on a secured loan, when the sale of the property that secured the loan fails to cover the debt in full. It allows the lender to collect additional money from the debtor to make up the difference. Key Takeaways A deficiency
What Is a Deficit? In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, company, or person spends more than it receives in a given
What Is Deficit Net Worth? Deficit net worth is a situation in which net liabilities are higher than net assets. Also known as negative net worth, deficit net worth can occur for a variety of reasons, but typically it arises when current or future asset values erode unexpectedly. Key Takeaways Deficit net worth occurs when
What Is Deficit Spending? In the simplest terms, deficit spending is when a government’s expenditures exceed its revenues during a fiscal period, causing it to run a budget deficit. The phrase “deficit spending” often implies a Keynesian approach to economic stimulus, in which the government takes on debt while using its spending power to create
What Is a Deficit Spending Unit? A deficit spending unit is an economic term used to describe how an economy, or an economic group within that economy, has spent more than it has earned over a specified measurement period. Both companies and governments may experience a deficit spending unit. Key Takeaways A deficit spending unit
What Is a Defined-Benefit Plan? A defined-benefit plan is an employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors, such as length of employment and salary history. The company is responsible for managing the plan’s investments and risk and will usually hire an outside investment manager to do this. Typically
