Unearned revenue represents money that you have received in advance of providing the goods or services to your customer. Unearned revenue is a liabilitiy of your business until you provide the goods or services you agreed to provide to the customer.
A liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased. To learn more, see Explanation of Adjusting Entries for a further discussion. To Top