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MessagePosté le: Lun 12 Mar - 08:29 (2018)    Sujet du message: DeMarre Carroll Raptors Jersey Répondre en citant


Amounts received before the actual earning of revenues are known as unearned revenues. They arise when customers pay in advance of the receipt of goods or services. Because the company has received cash but has not yet given the customer the purchased goods or services Authentic Nicolas Gaitan Jersey , the unearned revenues are in fact liabilities. That is, the company must provide something in return for the amounts received.

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There are two characteristics of adjusting entries. First, adjusting entries made at the end of an accounting period do not involve cash. Cash has either charged hands prior to the end of the period Authentic Yannick Carrasco Jersey , or cash will change hands in a future period. It is precisely because cash is not changing hands on the last day of the accounting period that most adjusting entries must be made. Second, each adjusting entry involves a balance sheet account and an income statement account. In each case requiring adjustment, we are either

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Unearned revenues are revenues collected in advance even though they are not yet earned. In other words, the business already collected cash before it performed the services or sold the product to its customers. Unearned revenue are classified as current liabilities because the business is obligated to perform a service or sell a product in the future in exchange for the cash that it collected in advance. Typical examples of unearned revenues are collecting advanced subscription payment for magazines or newspaper, selling season tickets to sports events Authentic Kevin Gameiro Jersey , collecting advanced rent from tenants, restaurants collecting deposits for reservations, lottery ticket receipts good for several drawings collected in advance Authentic Saul Niguez Jersey , etc. It is important to record properly what portion of customer advances have been earned, which should be appropriately recorded as revenues and what portion is unearned which should be appropriately recorded as liability.

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A building contractor may require a deposit before proceeding on construction of a house. Upon receipt of the deposit, the contractor has unearned revenue Authentic Sime Vrsaljko Jersey , a liability. The contractor must construct the house to earn the revenue. If the house is not built, the contractor will be obligated to repay the deposit.


Unearned revenue is a cash amount received before they have been earned. Unearned revenue is a tricky name for a liability. Liabilities are reported in the balance sheet. Don’t make the mistake of including unearned revenue with the revenues on the income statement.
When planning your next vacation you may want to consider a fun-filled getaway to the second largest island in Hawaii, Maui. There are so many adventurous Diogo Jota Jersey , as well as, relaxing things to experience on a Maui vacation that you may never want to go home.

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