Unearned revenue is a liability because it represents a company’s obligation to deliver goods or services in the future.

Service revenue is reported on the income statement under operating revenues, reflecting earnings from core business ...

She says that properly acknowledging and reporting deferred revenue is a requirement to comply with Generally Accepted Accounting Principles (GAAP.) She explains, “Following U.S. GAAP ...

therefore deferred revenue from advances will not create any deductible temporary differences. In scenarios where taxable expenses fall below accounting expenses, common examples include ...