Discover what unearned revenue is, how it’s recorded as a liability, and how it gets reported as income. Learn about its role ...

In accrual accounting, revenue is included as income when it is generated. The work is done, the company is paid, and the amount is entered as income. Only earned revenue – money exchanged for a good ...

Many businesses receive advance payment for products and services. In such a case, the monies received are not earned income because the business will provide the products or services at a later date.

Unearned income, also known as passive income, is derived from sources other than employment or business operations and can act as a financial safety net during times of job loss or financial crisis.