Unearned Revenue

[Suba]

Unearned revenue is deferred revenue where the income does not yet belong to the company, but the payment (money) has been received, so unearned revenue is considered a debt and recorded in the liabilities column. In simpler language, unearned revenue is income received in advance but goods or services have not been provided/delivered. After services are performed or goods are delivered, unearned revenue will be recorded as income and recorded in the income statement.

 

[Starmix]

That's good to hear about the explanation of unearned revenue. Accountants are knowledgeable about this.

 

[Augusta]

Unearned revenue is still income for a company . it is still money received in advance but goods or services have not been provided/delivered by the company

 

[Pearl]

It is good to record it as liabilities so that the business would stay motivated to meet up with the services they got payment for.