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In GAAP, I have never heard of the term Unearned Royalty, however, the "unearned" is pretty much the same in all accounting.
The reason anything "unearned" is considered a liability is because you (as the company) owes something in return. If a customer pays for you to say paint their house and they pay you "before" you paint the house, 1. you either have to paint the house or 2. return their money if unable to complete the task. This makes it a liability to you until "after" you have completed the job (service) or supplied the product.
It's just the opposite if you say paint their house "before" they pay you, then they owe "YOU" and therefore it is listed in the books as a "Receivable" and is listed as an Asset.
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∙ 13y ago
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What kind of account is unearned revenue?
Unearned Revenue is a liability account.
What is the journal entry for unearned income?
debit unearned incomecredit services liability
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
Is unearned revenue a liability?
yes
Is unearned commission a liability?
yes
What kind of account is unearned revenue?
Unearned Revenue is a liability account.
What is the journal entry for unearned income?
debit unearned incomecredit services liability
What type of account is unearned revenue?
Unearned Service Revenue is a Liability account.
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
Is unearned revenue a liability?
yes
Is unearned commission a liability?
yes
Is unearned revenue an asset or liablility?
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
What type of account is unearned service revenue?
Unearned Service Revenue is a Liability account.
When is unearned revenue recognized in the financial statements?
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements Is a church a company that could have unearned revenue?
Is unearned revenues account is an example of a liability?
no
What is unearned commission account classification?
liability
What type of account is unearned rent?
Liability account.
