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Understanding Unearned Revenue (Income Received in Advance) at Accounts Classes by Karthick Balaraman In accounting, unearned revenue is money received before a service is provided or a product is delivered. Even though you’ve received the cash, it’s not yet income—because you haven’t earned it. Why It’s a Liability When a customer pays in advance: You owe them a product or service. That obligation creates a liability. This liability is called Unearned Revenue (or Deferred Revenue). How It Works
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The Commerce Teacher on Instagram: "Unearned Income Kya Hota Hai? Perfect Adjustment Entry #UnearnedIncome #IncomeReceivedInAdvance #AdjustmentEntries #AccountingBasics #CommerceReels #TheCommerceTeacher #JournalEntries #AdvanceIncome #AccountancyClass11 #AccountancyClass12 #FinancialAccounting #ExamTricks #CommerceStudents #BComStudents #AccountingConcepts #ReelsForStudents #AccountsMadeEasy"
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