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What is unearned incomes? |
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Answer» Unearned income means income received which is not earned.. That means you had received income for which work have to be done and thereby it creates the liability. You can also say advance received..In balance sheet you have to show it in liability side as it creates the liability. Income received before a good is sold or a service is provided. Unearned income is classified as a current liability on the balance sheet until it is recognized as earned income during the accounting cycle. |
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