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What is another name for unearned revenue?
Unearned revenue is also referred to as deferred revenue and advance payments.
What type of account is unearned revenue?
liability
According to the accounting reporting principles, unearned revenue must be recorded as a liability. If the value was entered as an asset rather than a liability, the business’s profit would be overstated for that accounting period.
Can a company use unearned revenue?
When a company records unearned revenue, it does so as a liability on its balance sheet. Prepaid services that count as unearned revenue include rent, cable and newspaper subscription services, retainers for legal services, and prepaid insurance.
What is the entry for unearned revenue?
Unearned revenue is a liability for the recipient of the payment, so the initial entry is a debit to the cash account and a credit to the unearned revenue account.
What’s another word for unearned?
What is another word for unearned?
| inappropriate | uncalled-for |
|---|---|
| undeserved | unjustified |
| not deserved | not earned |
| not merited | not warranted |
| unmerited | unwarranted |
How is unearned revenue different from revenue earned?
Difference Between Revenues and Unearned Revenues Earned revenue is the revenue received or accrued for the services provided or products delivered during a financial year. Unearned revenues represent the cash proceeds from the clients for which the services will be provided in the future.
What type of account is unearned revenue quizlet?
What type of account is the unearned revenue account? Unearned revenue is a liabilities account.
How do you record unearned revenue?
Unearned revenue should be entered into your journal as a credit to the unearned revenue account, and a debit to the cash account. This journal entry illustrates that the business has received cash for a service, but it has been earned on credit, a prepayment for future goods or services rendered.
What is the meaning of unearned income?
Unearned income is income from investments and other sources unrelated to employment. Examples of unearned income include interest from savings accounts, bond interest, alimony, and dividends from stocks. 12 Unearned income, also known as passive income, is income not acquired through work.
What unearned means?
1 : not gained by labor, service, or skill unearned income. 2 : scored as a result of an error by the opposing team an unearned run.
How do you record unearned revenue earned?
What is revenue earned?
Revenue earned means the income actually received by the Operator from the Users in the corresponding month on account of payment for the Telecommunication Services.