A prepaid expense is an expenditure that is paid for in one accounting period, but for which the underlying asset will not be entirely consumed until a future period. Therefore, the prepaid expense must not be shown as an expense in the accounting period in which it is paid but instead it...
Unearned income is regarded as a liability of the business and it is recorded as a liability in the balance sheet. Unearned income means the...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your toug...
What Is Unearned Revenue vs. Deferred Revenue?Unearned revenue and deferred revenue are two ways of referring to the same idea: revenue that has been received but has not yet been earned. Deferred revenue is also called deferred income.
Said differently, unearned revenue is the liability account used to measure how much income the taxpayer has not yet recognized. The cost of deferred revenue The company will record the entries shown in Exhibit 6 to reverse the entries shown in Exhibit 1, which initially record unearned revenue....
InfoCure and PracticeWorks have requested our opinion as to the proper treatment of the Distribution and certain of the Corporate Restructuring Transactions for United States federal income tax purposes. Unless the context requires otherwise, capitalized terms used in this opinion letter and not ...
False Deferred income means an advance amount which is received by a company for their business activities which agreed to perform their activities...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough ...
Unearned revenue is recorded on a company’s balance sheet as a liability because it represents a debt owed to the customer. Once the product or service is delivered, unearned revenue becomes revenue on the income statement. Receiving funds early is beneficial to a company, as it increases its...
- 例句:Taxes payable include income tax and sales tax.- 翻译:应交税费包括所得税和销售税。16. 长期借款 Long-term Loans- 音标:/lɔːŋ tɜːrm loʊnz/- 释义:偿还期超过一年的借款。- 例句:The company has a long-term loan of $500,000 for equipment purchase...
Unearned revenue or deferred revenue appears as a liability on the balance sheet. It does not initially appear on the income statement but is transferred to the revenue account as the service is provided, affecting the income statement over time and ensuring proper revenue recognition. Can You Pro...
When the firm first receives payment as unearned revenues, the bookkeeping journal transactions that follow depend on how long it will take to earn the income (complete delivery of goods and services). The critical question is whether or not "earning" occurs in the same period as payment. Exa...