Unearned revenues are generallySolutionSolution Unearned re

Unearned revenues are generally:

Solution - Unearned revenues are generally the liabilities. This is liability till the service/Product is provided.

Unearned revenues are created when customer pays in advance for the services/Products which are not provided.

Study by journal entry

Assume - Cash received in advance for services of $10000

Accounts Title	Debit	Credit
Cash	$10000
Unearned revenue		$10000
(Cash received in advance)

Unearned revenue	$10000
Service revenue		$10000
(Entry when service is provided)