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Thus unearned revenue is the amount of money that customers have paid for products or services that will be made available to them in the future.
Unearned revenue business definition. In accounting unearned revenue is prepaid revenue. It can be thought of as a prepayment for goods or services that a. Unearned revenue comprises funds that a company has received for goods or services that it has not yet provided. Unearned revenue is a liability or money a company owes.
This is money paid to a business in advance before it actually provides goods or services to a client. Unearned revenue sometimes referred to as deferred revenue is payment received by a company from its customers for products or services that will be delivered at some point in the future.
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