what is unearned revenue? provide three examples of unearned revenue.
What is Unearned Revenue? Unearned revenue refers to funds a seller receives for goods or services not yet delivered to the buyer. Unearned revenues turn up in many familiar purchase situations. When a traveler purchases airline or railroad tickets in advance, for instance, the carrier has unearned revenues until it delivers the service.
Unearned (Deferred) Revenue, Deferred Payment. Definition, Meaning Explained, Example Transactions. Airline tickets paid for before the flight represent unearned revenues for the airline until the flight occurs. Upon ticket purchase, airline accountants credit an unearned revenue account. They debit this account when the flight occurs.