SOLVED:How does unearned revenue arise? Why can it be classified properly as a current liability? Give several examples of business activities that result in unearned revenues.
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SOLVED:Which of the following is not considered a current liability? A. Accounts Payable B. Unearned Revenue C. the component of a twenty-year note payable due in year 20 D. current portion of a noncurrent note payable
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Understanding Unearned Revenue (Income Received in Advance) at Accounts Classes by Karthick Balaraman In accounting, unearned revenue is money received before a service is provided or a product is delivered. Even though you’ve received the cash, it’s not yet income—because you haven’t earned it. Why It’s a Liability When a customer pays in advance: You owe them a product or service. That obligation creates a liability. This liability is called Unearned Revenue (or Deferred Revenue). How It Works
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