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Unearned Revenue - What is it?

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What types of industries have unearned revenue?
Why is unearned revenue considered a liability?
When is the unearned revenue recognized in the financial statements?

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Solution Summary

Unearned rent revenue is a liability account.
Credit side of unearned rent revenue (a liability account) represents an increase.

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Unearned rent revenue is a liability account.
Credit side of unearned rent revenue (a liability account) represents an increase.
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Here are your answers:

Question: What types of industries have unearned revenue?
Answer: All kinds of industries incur unearned revenue. For example, consider a publishing company:

The publishing ...

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