Unearned revenue is the same thing as deferred revenue. In accounting, unearned revenue is a liability. It is a liability because even though a company has received payment from the customer, the ...
A great irony of accounting on an accrual basis is that it lets companies report revenue that they do not have and actual cash that they have not earned. Accounts receivable and deferred revenue ...
Whether you are a small business owner trying to get an accurate picture of cash flow or a Main Street investor examining financial statements to pick stocks, understanding deferred revenue can help ...