unearned revenue
- noun
- /ʌnˈɜrnəd ˈrɛvəˌnu/
- Specialized
:
ingresos no devengados
- For financial reporting purposes, advance payments received from customers are reflected as an unearned revenue liability of the seller.
Examples
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The company reported an increase in unearned revenue after receiving several deposits for future services.
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At the end of the fiscal year, the accountant noted the unearned revenue on the balance sheet as a liability.
-
They classified the funds received for the concert tickets as unearned revenue until the event took place.
Synonyms
Money a company receives in advance that it must earn later and is recorded as something the company owes
Surface Forms
Morphology
The meaning is directly compositional: 'unearned' negates 'earned', so 'unearned revenue' literally denotes revenue that has not been earned. While the exact accounting classification as a liability is technical, the basic notion of income received but not yet earned is transparent and predictable from the constituents, so a B1 learner who knows the words would understand the core meaning.
Etymology
Unearned revenue comes from a simple business picture: a customer pays before the service or product is given. Imagine buying a plane ticket now—the airline has the money but has not flown you yet, so the money is still unearned and is treated as a promise, not real 'income' yet.
