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I'm confused about the "current portion of deferred revenues" being a liability. It sorta sounds to me more like an asset. Unless they are paying out stuff, in which case certainly the "deferred revenue" is "free cash".

The cash collected is an asset (Debit on the books) so there needs to be a Credit entry to keep everything in balance. Usually the Credit would be Sales/Revenue. But because of the matching principal (align Revenue with Expenses) it isn't appropiate here, thus the Credit to Deferred Revenue. When the service is performed in the future the Revenue and Expenses will be aligned. But, yes, it is certainly "free cash" and appropriate to include for the Flow Ratio.

It's basically Float, which I know you're familiar with, jmls.

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