unearned revenue Sentence Examples
- Unearned revenue is a liability recorded when payment is received for services or products that have not yet been provided.
- Accountants recognize unearned revenue as an asset until it is earned by the business.
- Deferred revenue is another term for unearned revenue.
- Examples of unearned revenue include prepaid rent, magazine subscriptions, and insurance premiums.
- Unearned revenue should be carefully managed to ensure accurate financial reporting.
- A company must track unearned revenue to match expenses to the period in which services are provided.
- Failing to account for unearned revenue can lead to overstated profits and misrepresentation of the company's financial position.
- Unearned revenue is typically classified as a current liability on the balance sheet.
- When unearned revenue is recognized, it is transferred to earned revenue and recorded as income.
- Auditors carefully review unearned revenue accounts to assess the accuracy of the company's financial statements.
unearned revenue Meaning
unearned revenue (n)
personal income that you did not earn (e.g., dividends or interest or rent income)
(accounting) income received but not yet earned (usually considered a current liability on a company's balance sheet)
Synonyms & Antonyms of unearned revenue
No Synonyms and anytonyms found
FAQs About the word unearned revenue
personal income that you did not earn (e.g., dividends or interest or rent income), (accounting) income received but not yet earned (usually considered a curren
No synonyms found.
No antonyms found.
Unearned revenue is a liability recorded when payment is received for services or products that have not yet been provided.
Accountants recognize unearned revenue as an asset until it is earned by the business.
Deferred revenue is another term for unearned revenue.
Examples of unearned revenue include prepaid rent, magazine subscriptions, and insurance premiums.
