pesimpson
Sep 9, 2013, 05:04 PM
Is unearned revenue an expense
pready
Sep 9, 2013, 05:39 PM
No, Unearned Revenue is where someone pays in advance for a service or goods will be provided at a later date. An example is a subscription where you purchase a one year subscription to a magazine and you receive your magazines on a monthly basis. You have unearned revenue when the payment is made for the subscription and as the magazines are delivered a portion of the unearned revenue becomes earned.