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Is service revenue an asset or liability?
Services revenue is revenue same as product revenue and it is not an asset or liability of the business.
Is service revenue liability?
Service revenue is not considered a liability; instead, it is classified as revenue on the income statement. However, if payment is received in advance for services not yet performed, it creates a liability known as "deferred revenue" or "unearned revenue." This liability reflects the obligation to deliver services in the future. Once the services are performed, the deferred revenue is recognized as actual service revenue.
Unearned revenue is a contra revenue account?
Unearned Revenue is a Liability Account
Is adjusting entry debit to revenue and credit to liability correct?
Yes, an adjusting entry that debits revenue and credits a liability is correct in certain situations, such as when recognizing unearned revenue. This adjustment reflects the recognition of revenue that has been earned but was previously recorded as a liability. It ensures that the financial statements accurately reflect the earned revenue and the reduction of the liability.
Is deferred revenue a current liability?
Yes, deferred revenue is a current liability. It means that the revenue has yet to be earned, therefore it is still owed to the business or company.
What kind of account is unearned revenue?
Unearned Revenue is a liability account.
Is unearned revenue a liability?
yes
Is unearned revenue an asset or liablility?
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
Is revenue an asset liability or owner's equity?
sales revenue is owner's equity
What type of account is unearned revenue?
Unearned Service Revenue is a Liability account.
When is unearned revenue recognized in the financial statements?
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements Is a church a company that could have unearned revenue?
What type of account is unearned service revenue?
Unearned Service Revenue is a Liability account.
