Unearned revenue

When should a company reclassify unearned revenue to revenue?

Introduction Unearned revenue is defined as the payment which a company receives from its customer for providing a service or selling a product, that is expected to be delivered sometime in the future. The unearned revenue is used in accrual accounting. In accrual accounting, revenue is not recognized until the associated products or services are …

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What Is the Difference Between Share Capital and Liabilities?

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 …

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