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    pesimpson's Avatar
    pesimpson Posts: 8, Reputation: 1
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    #1

    Sep 9, 2013, 05:04 PM
    Accounting question
    Is unearned revenue an expense
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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.
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