Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

"Unearned revenue" is what type of account? 1. asset 2. liability 3. owner's equity 4. income?

user-image
Question added by ryad abdalla , chief of accounts , Evntoo
Date Posted: 2015/11/02
Liezel Mejia
by Liezel Mejia , Accounting Supervisor , Universal Robina Corporation

Unearned revenue is a liability account, from which cash is collected before rendering your services.

Ahmad Mohammad Zayed
by Ahmad Mohammad Zayed , (Tax Analyst) VAT , FEDERAL TAX AUTHORITY

unearned revenue is a liability account shows in the balance sheet as a short term liabilities

the journal entry is

from / cash or bank  

    to / unearned revenue

when the service provided the journal entry will be:

from / unearned revenue

   to / service revenues

 

 

Mohamed Salama Atwa Elsayed Elsayed
by Mohamed Salama Atwa Elsayed Elsayed , Chief Accountant , Bayt Al Itqan Company

 chosse number3       Liability

Toyin Adun-FCA-MBA-Finance-CMA
by Toyin Adun-FCA-MBA-Finance-CMA , Finance Manager , Emirates Business Group

Liability. Deferred Income

YAHUL HAMEED HAMEED
by YAHUL HAMEED HAMEED , General Accountant , Al Wahdah Auto Radiant Factory

unearned revenue is a liability for the recipient of the payment, so the initial entry is debit to the cash account and a credit to the unearned revenue account.  It is a asset account.

Deleted user
by Deleted user

liability under prepaid income received

Waseem Ahmed
by Waseem Ahmed , Senior Accountant , Goodwill Enterprises

A liability account  received in advance of providing goods or services. So it will settle after timely provided services.

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

agree with most of the answers "liability"

Deleted user
by Deleted user

2.Liability 

Unearned revenues are collections in advance before delivering goods and service...

ryad abdalla
by ryad abdalla , chief of accounts , Evntoo

 best answer"  two "liability

أرشد حسين
by أرشد حسين , Payroll Accountant , RAINBOW CP COATING

Unearned revenue is prepaid revenue, It occurs when a company receives money before the money is earned.

More Questions Like This