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What is the liability created by receiving the revenue in advance?
Wiki User
∙ 14y ago
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
Wiki User
∙ 14y ago
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Is unearned revenue a current liability when advance payment received for construction work?
no
What account is affected when you received cash for work to be done in the future?
Increase in asset; increase in liability. Receiving money is revenue. receiving money you haven't earned yet means you owe that work. What you owe is a liability.
Is service revenue an asset or liability?
Services revenue is revenue same as product revenue and it is not an asset or liability of the business.
What is the journal entry for prepaid income?
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
Is deferred revenue an asset?
Deferred revenue is recognized when cash received in advance for product or service that not delivered or rendered, so it's liability, once service fulfilled or product received Revenue Would be recognized Deferred revenue also Known as unearned revenue
Is unearned revenue a current liability when advance payment received for construction work?
no
What account is affected when you received cash for work to be done in the future?
Increase in asset; increase in liability. Receiving money is revenue. receiving money you haven't earned yet means you owe that work. What you owe is a liability.
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 service revenue an asset or liability?
Services revenue is revenue same as product revenue and it is not an asset or liability of the business.
What are the entries for an advance invoice on accrual basis?
Well as far as I am concerned i think an advance invoice should be entered as accuont receivable with a liability or deferred revenue account.
What is the journal entry for prepaid income?
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
Is deferred revenue an asset?
Deferred revenue is recognized when cash received in advance for product or service that not delivered or rendered, so it's liability, once service fulfilled or product received Revenue Would be recognized Deferred revenue also Known as unearned revenue
Unearned Revenue has a normal balance of a?
Credit. Unearned Revenue is a Liability and like all Liabilities it has a Credit Balance.I decided to add this as I have been asked "why" is Unearned Revenue a liability isn't it Revenue?Yes and no. The key word here is "Unearned". Because of the fact that it is unearned, the company (although has received money) is liable for that in some form. For example, if a person pays a business $5,000 in advance for painting their house, the company now is liable for that amount, meaning they have to do one of two things.1. Complete the job and "earn" the moneyor2. Refund the money and not do the jobUntil this is done, the money received in advance for the job is listed as Unearned Revenue and categorized as a liability.
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
Is deferred revenue a current liability?
Yes, deferred revenue is a current liability. It means that the revenue has yet to be earned, therefore it is still owed to the business or company.
What kind of account is unearned revenue?
Unearned Revenue is a liability account.
A liability revenue relationship exists with?
unearned revenue adjusting entries
