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Unearned Revenue

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Unearned Revenue
Revenue for a company from a project that has not been completed or a product that has not been delivered. A common example of unearned revenue is prepayment for a lease or asset. Unearned revenue is a liability for the company until the project has been completed or the product delivered; at that point, it becomes earned revenue.


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Unearned revenue was down year over year, from $15.
The taxpayer treated the $175,000 as unearned revenue and recorded it as a liability prorated over 10 years (the note's length).
A mere 1 percent of over-collected taxes yields unearned revenue of $45 million.
 
 
 
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