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No,
Unearned revenue is a current liability
What unearned revenue is, is it is (so many is') someone saying "here, I will pay you 500$ for one year's worth of insurance" (or something else that can be prepaid)
You have NOT EARNED this yet. You still owe the person one year's worth of insurance coverage, so it is a liability to you.
Another example.
You give me 500$ to mow your lawn for the next month. According to the matching principle, I have not earned this revenue if there are expenses left out on my part. I owe you one month's worth of mowing your lawn and at the end, then it is a revenue.
Here is the journal entry for it:
When I receive money in promise for mowing your lawn. (showing my books)
Debit Cash
Credit Unearned Revenue
At the end of that month
Debit Unearned Revenue
Credit Revenue
Hope that helps!
What else can I help you with?
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
What kind of account is unearned revenue?
Unearned Revenue is a liability account.
What type of account is unearned revenue?
Unearned Service Revenue is a Liability account.
What type of account is unearned service revenue?
Unearned Service Revenue is a Liability account.
Unearned revenue account is classified as a?
Unearned revenue account is classified as current liability as it is the revenue not yet earned by business.
Is unearned revenue is nominal account?
Unearned ravenue is liability account as revenue is not yet earned but cash received.
Is unearned revenue nominal account?
no!! =) its a real account
Do unearned fees go into an income statement?
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
What is the nature of the unearned revenue?
unearned revenue falls under the head of nominal account and it is definaltel a liability on the organization.
Unearned revenue is classified as which type of the account?
contra account
What is the entry for unearned commission?
The entry for unearned commission typically involves debiting a cash or accounts receivable account and crediting an unearned revenue account. This reflects the receipt of payment for services or sales that have not yet been performed. Once the commission is earned, the unearned revenue account is debited, and the commission revenue account is credited to recognize the income.
Are Unearned Revenue is a contra asset account?
No. It's a liability account.
