Yes, unearned revenue is an example of liablity. Unearned Revenue is money already received from the customer or client for service or product that has yet to perform or deliver. In accounting initial entry, cash is normally debited and unearned revenue is credited since it is a liability that the business need to provide yet a service or product. Unearned Revenue will be reverse once the service or product is already done or delivered to the customer.LIABILITy
In accounting, liability is the payables, debts or obligations of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:1. Current Liabilities
-these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities
-these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage Payable
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In accounting, unearned revenue are the revenues from products and/or services that are yet to be delivered to its customers or clients. Since the business haven't delivered the products or services yet, it is classified as liability as you still owe your customers/clients something.
To know more about liabilities, just continue on reading below.
In accounting, liabilities are the resources that a company owes to another business or people.Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable
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