Unearned Revenue


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Related to Unearned Revenue: Accrued Revenue, Deferred revenue

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.
References in periodicals archive ?
The company will record the entries shown in Exhibit 6 to reverse the entries shown in Exhibit 1, which initially record unearned revenue.
Thus, when directly converting expenses, prepaid expenses have the same effect on expenses as unearned revenues have on revenues because both represent prepayments (deferrals).
Thus, the retailer would use an unearned revenue account to record the liability associated with gift cards when they are sold.
The net investment in the lease implicitly includes initial direct costs in the minimum lease payment component plus initial direct costs, less unearned revenue.
If a firm receives cash in exchange for a promised future delivery of products or services, it records the increase in cash (an asset account) and the increase in unearned revenue (a liability account).
An excellent example of an unearned revenue is interest payable on a note receivable.
General unallocated (expense) income includes foreign currency transaction gains (losses), interest income, dividend income, the profit related to unearned revenue, and the impact of LIFO accounting as discussed in note (I).
05 in gains related to channel returns estimates and unearned revenue for a net $0.
D) General unallocated expense includes foreign currency transaction gains (losses), interest income, dividend income, and profit related to unearned revenue.
The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) the Company's ability to produce the plant product tonnage was inconsistent with the tonnage the Company had reported to the SEC and investors as shipments of sales in its financial results; (2) by including unearned revenue the Company's reported financial statements were grossly inflated; and (3) the rate of growth of the Company's business was inconsistent with what it had reported.
Unearned revenue increased by $1,263,773 to $6,476,016 during the twelve month period, an increase of 24.
Two hurricanes in September resulted in schedule vagaries that raised the unearned revenue adjustment by $813,000 and shifted that revenue and profit into the fourth quarter.