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Unearned revenue is a liability for the recipient of the payment, so the initial entry is a debit to the cash account and a credit to the unearned revenue account.
It is simply Current Liability, which is undue but received. when it becomes due, it becomes income, but uptill then it is a liability.
it as liablity as received amout has not been earned therefore income cant be credited remaining one is liablity which has to be credited with debited asset.
2 - Liability
The unearned revenue account is usually classified as a current liability on the balance sheet.
Current Liablity till we dont give goods/services,after delivery it becomes income
As unearned revenue appears as a credit entry and cannot be classified as a revenue, it will automatically be classifed as a liability
unearned revenu is a liability
A deferred revenue is a product that relates to year N +1 but was recorded in N.
Incidence documents summaries
For the Balance Sheet
The Deferred appear at the bottom of the liability.
To the income statement
The deferred revenue decrease account balances usual products.
For Annex
Accruals must be information in the annex, if it is significant.
I agree with Mr.Mohamed Iqabl100 % and i think its the best defin for it and the best use as well, finally i wish if we can agree with some one its the best to say that instead of asnwer without know the accurate answer.
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟