Unearned revenue is the same thing as deferred revenue. In accounting, unearned revenue is a liability. It is a liability because even though a company has received payment from the customer, the ...

Small businesses, especially in the service sector, may collect revenue in advance of delivering their offerings. For example, a tanning salon might sell a package of 12 sessions for an upfront ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed ...

Unearned income is highly useful for anyone looking to accumulate wealth, but it does come with tax consequences. Here’s the deal. What Is Unearned Income? What’s the Difference Between Unearned ...

Many investors get intimidated by accounting concepts, but it's important to understand how a company brings in revenue, and how much of that money makes it to the bottom line in the form of profit.

Earned income is the money you earn through work or services, while unearned income is the money you receive without actively working for it. Both are crucial for financial planning and ...

Unearned income, also known as passive income, is derived from sources other than employment or business operations and can act as a financial safety net during times of job loss or financial crisis.

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Somer G. Anderson is CPA, doctor of accounting, and an ...

Earned income refers to the money that you make from working, including salaries, wages, tips and professional fees. Unearned income, comparatively, is the money that you receive without performing ...

Your money might end up in the same place, but it comes from different, earned and unearned, sources. Photo:TaxCredits.net. Understanding the difference between what is unearned income and what is ...