Define the term unearned revenue.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 7DQ: Define the terms revenue and expense. How are these terms related?
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Define the term unearned revenue.
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Step 1
Deferred revenues:
Deferred revenue is a liability to render service or to deliver products in future for the advance collection of cash. Deferred revenue would be recorded as a liability under liabilities section of the balance sheet. Unearned revenue is also known as deferred revenues.
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