Unearned revenue is reported on the income statement whereas deferred revenue is reported on the statement of financial position.

Question

Quizplus · Accepted Answer

Unearned revenue and deferred revenue are two names for the same concept. Both refer to revenue that has been received, but not yet earned. Therefore, they are reported on the statement of financial position (balance sheet) as a liability, not on the income statement.

Unearned Revenue Is Reported on the Income Statement Whereas Deferred