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Definition of 'Unearned Revenue'
When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can be thought of as a "pre-payment" for goods or services which a person or company is expected to produce to the purchaser. As a result of this prepayment, the seller now has a liability equal to the revenue earned until deliver of the good or service.
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Investopedia explains 'Unearned Revenue'
From an accounting perspective, unearned revenue is a double-edged sword. The early cash flow to the firm is advantageous for any number of activities, such as paying interest on debt to purchasing more inventory. However, by accepting unearned revenue, the firm has then entered a legal obligation to deliver on the terms of the payment. For example, with a prepayment on a lease contract, the revenue is a liability until it has been earned.
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Search results for 'Unearned Revenue'
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http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/financial-statement-analysis.asp
... 4.3 Nominal vs. Real GDP, and the GDP Deflator; 4.4 Limitations of GDP and Alternative
Measures; 4.5 Components of Marginal Product and Marginal Revenue; ...
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http://www.investopedia.com/university/financialstatements/financialstatements5.asp
... 'Cash advances from customers' represents cash received for services not yet rendered;
this is also known as unearned or deferred revenue and is classified as ...
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http://www.investopedia.com/articles/taxes/08/kids-first-income-tax-return.asp
... Filing is required by the Internal Revenue Service (IRS), based on the child's ... The
child has unearned income (from investment interest, gains, and so on) above ...
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http://www.investopedia.com/exam-guide/cfa-level-1/red-flags/what-are-shenanigans.asp
... 4.3 Nominal vs. Real GDP, and the GDP Deflator; 4.4 Limitations of GDP and Alternative
Measures; 4.5 Components of Marginal Product and Marginal Revenue; ...
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http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp
... 4.3 Nominal vs. Real GDP, and the GDP Deflator; 4.4 Limitations of GDP and Alternative
Measures; 4.5 Components of Marginal Product and Marginal Revenue; ...
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http://www.investopedia.com/articles/trading/09/incorporate-active-trading.asp
... In fact, all income from trading is considered unearned, or passive, income. ... How
the IRS Defines a Trader In IRS Publication 550 and Revenue Procedure 99-17 ...
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http://www.investopedia.com/university/value-investing/value-investing4.asp
... In addition, we generate revenue through other marketing and promotional services,
such as ... (For example, an insurance company might list "unearned premiums" as ...
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