Introduction Under the accrual basis of accounting, the financial transactions are to be recorded as and when they occur. When the seller provides services or sells goods, then he has to recognize the revenue even if the customer has not made payment. This is in line with the accrual concept. It is the revenue that […]
What is Accrued Revenue? – Overview, Example, And More Read More »
Introduction: The balance sheet, also known as the statement of financial position, is one of the annual financial reports that exhibit a company’s financial position as at the year-ended. Share capital and liabilities are both line items of the balance sheet. The statement of financial position is based on the accounting equation, which is also
What Is the Difference Between Share Capital and Liabilities? Read More »
Unearned Revenue: Unearned revenue is the money received by an individual or a company for services that have yet to be provided, or goods that are yet to be delivered. This is a prepayment from the buyer for goods and services to be supplied at a later date. This would count as a liability for
Unearned Revenue vs Unearned Income – Key Different Explained Read More »
Unearned Revenue: Unearned revenue is the money received by an individual or a company for services or goods that haven’t been supplied or provided yet to the buyer. This counts as a prepayment from the buyer’s perspective for goods and services that need to be supplied at a later date to them. Unearned revenue is
Unearned Revenue vs Unbilled Revenue – What Are the Different? Read More »
Definition and meaning: Unearned Revenue: Unearned revenue is the cash obtained from a customer in advance of providing the goods or services they are purchasing. It is considered a short-term liability instead of revenue because, as per the revenue recognition principle of accounting, revenue is reported only when earned. Since the company owes money to
Unearned Revenue Vs. Unrecorded Revenue (Explained) Read More »
Introduction: On the contrary to what the names suggest, unearned revenue and deferred revenue are both the same thing. They are both incomes for which the cash has been collected, but the obligations of delivering goods and services are yet to be performed. This concept arises from the accrual basis of accounting, which requires companies
Unearned Revenue Vs. Deferred Revenue (Explained) Read More »
Definition: Unearned revenue is the amount that the supplier receives in advance from a customer for which the goods or services are not supplied to or satisfied by the customers. This is the cash received by the seller or the company, but they have not yet performed their duties, or their performance is not satisfied
What is Unearned Revenue? Definition, Nature, Recognition Read More »
Introduction: Unearned revenue and prepaid expense are the same things but in the context of different people. Unearned revenue is the money received in advance for the services or products that are still to be delivered to the customer at a future date. This is a liability amount which is an obligation over the company.
Unearned Revenues Vs. Prepaid Expenses – Key Different Explained Read More »
Introduction: Unearned revenue is the cash proceeds received by a company or individual for a service or product that the company or individual still has to deliver to the customer. It is an advance payment from a customer that is expecting the delivery of services or products at a later date. The company cannot recognize
IS UNEARNED REVENUE AN ASSET OR LIABILITY? Read More »