Unearned revenue definition, explanation, journal entries, examples
Accurate accounting for unearned revenue ensures financial statements accurately reflect a company’s financial Accounting For Architects position and performance. You should report any deferred revenue as a current liability on your company’s balance sheet, knowing that prepayment terms are typically for 12 months or less. Unearned fees are initially recognized as liabilities on the balance sheet, representing obligations to deliver future goods or services. Steps To Recognize Prepaid Revenue: In the entry above, we removed $6,000 from the $30,000 liability. Deferred [...]