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Answered 2009-10-30 20:21:09
Unearned revenue accounts represent the amount of cash received before services are provided. Since services have not been provided yet, it is not revenue. (It represents the obligation for future services in order for the revenue to be earned.)
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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 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 a nominal account?
Unearned ravenue is liability account as revenue is not yet earned but cash received.
Are Unearned Revenue is a contra asset account?
No. It's a liability 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.
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!)
Is Unearned revenue credit or debit?
If you sell goods that have yet to be delivered you would create an account for unearned revenue. Unearned revenue is a liability account because you are still liable to produce those goods so if you are increasing the amount of unearned revenue you would credit the account, however if you are decreasing the unearned revenue, meaning you have supplied the goods to the customer, then you would debit the account.
What type of account is Unearned revenue and what its normal balance?
Unearned revenue is a liability account. It is revenue that is received in one fiscal period despite the fact that revenue is not earned until another fiscal period. Its normal balance is credit.
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?
How do you record unearned revenue?
Debit to Cash (asset) Credit to Unearned Revenue (Liability)
Is unearned revenue 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 are examples of liability account?
A liability account is anything the company owes. Accounts Payable, Notes Payable, these are two examples of a liability account. Unearned Revenue is another example of a liability account. Unearned revenue is revenue a company has received but has not yet fulfilled their obligation to the customer. Because the company is now liable for either providing the product (or service) to the customer or refunding the money paid by said customer, it is a liability account until all obligations are fulfilled.
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.
A liability revenue relationship exists with?
unearned revenue adjusting entries
What is Unearned revenue reported as in a financial statements?
A liability.
Is unearned revenue a credit balance?
Yes, Unearned revenue has credit balance and it is liability for business until it is actually earned.
On which financial statements can you find unearned revenue?
The keyword is "Unearned", because it is unearned it is a liability until after it is earned and is listed as such. Therefore, Unearned Revenue will be listed on financial statements that include "Liabilities".
Is unearned revenue is nominal account?
no!! =) its a real account
When a business entity receives payment before delivering goods what is the unearned revenue account?
In accrual-based accounting, you would not recognize revenue before delivering the goods. You would typically have a liability account for "deferred revenue."
Does unearned revenue go on an income statement or balance sheet?
Unearned revenue is liability for business as amount is received but services are not provided that's why it is liability until it is earned and shown in balance sheet.
Unearned revenue is classified as which type of the account?
contra account
Unearned revenue a liability?
Unearned revenue is the amount which client has paid already but not received the services yet so it is the liability of the company until they renderred the services to client or otherwise return back the amount to the client.
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