Companies using accrual accounting method need to adhere to revenue recognition principles proposed by Generally Accepted Accounting Principles (GAAP). The method states that companies may recognize ...

Businesses sometimes need to make an unearned revenue adjusting entry to their balance sheet. These entries reflect goods and services that the company has been paid for but not yet provided. As ...

Revenue is income from a business's normal activities, like a landscaper's service fees. Unearned revenue is prepaid by customers and is a liability until services are rendered. Recording unearned ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Unearned revenue represents payments ...