January 10, 2015 in 

Unearned revenue, also called deferred revenue, is revenue that a company has received but has not yet earned. Unearned revenue typically arises when a customer pays for a good or service in advance of receiving it. For example, when a customer buys a one-year subscription to a magazine, the customer has paid for the next twelve issues of the magazine, even though the customer has only received the first issue. The remaining eleven issues of the magazine represent unearned revenue for the publisher.

Unearned income is money that is received without having to work for it. This can include interest from investments, dividends from stocks, and rental income. It is important to note that unearned income is not the same as passive income, which is income that is generated from sources that do not require active work to maintain.

Unearned revenue is an important concept in accounting because it represents a liability for a company. A company must eventually earn the revenue that it has deferred, and if it does not, it may have to refund the customer. For this reason, companies must carefully track unearned revenue and make sure that they do not defer too much revenue.

There are a few different ways that companies can account for unearned revenue. The most common method is the accrual method, which recognizes revenue when it is earned, not when it is received. Under the accrual method, the magazine publisher would recognize revenue in each month as the customer receives the issue of the magazine.

Unearned is an important aspect of books because it allows readers to connect with the characters on a deeper level. It allows readers to feel as if they are a part of the story and that they understand the characters better. Unearned also allows readers to feel more emotionally attached to the story and the characters.

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About the author 

CJ McDaniel

CJ grew up admiring books. His family owned a small bookstore throughout his early childhood, and he would spend weekends flipping through book after book, always sure to read the ones that looked the most interesting. Not much has changed since then, except now some of those interesting books he picks off the shelf were designed by his company!

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