Unearned revenue represents cash received from customers in advance of providing the goods or services
The revenue is “unearned” because the company must still deliver the goods or services
Until delivery occurs, the amount received as an advance is a liability, since you owe the customer something:
Either provision of services or return of their cash
When delivery occurs, the amount becomes earned and revenue is recorded
Qs: Can anyone take a stab at what unearned revenue is?