Meaning of the word "unearned revenue" in English

What does "unearned revenue" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

unearned revenue

US /ʌnˈɜrnd ˈrɛvəˌnu/
UK /ʌnˈɜːnd ˈrɛvɪnjuː/

Noun

money received by a company for goods or services that have not yet been delivered or provided to the customer

Example:
The software company recorded the annual subscription fee as unearned revenue until the service was provided.
Understanding unearned revenue is crucial for accurate financial reporting.