The difference between unearned revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and unearned revenue has never been recorded.

Question

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Unearned revenue is recorded as a liability when cash is received before services are performed, while accrued revenue is recorded as an asset when services are performed before cash is received. Both require adjustments, but unearned revenue is recorded upon receipt of cash.

The Difference Between Unearned Revenue and Accrued Revenue Is That