what is unearned revenue and where is it reported
Unearned Revenue Reporting. The unearned revenue amount at the end of the time period is reported on the balance sheet. The cash flows from unearned revenue are recorded on the cash flow statement. Unearned revenue flows through the income statement, as it is earned by the company. One factor to keep in mind is to make sure the prepaid revenues are collected with cash, not with an accounts receivable.
Unearned revenue is money received by an individual or company for a service or product that has yet to be fulfilled. Unearned revenue can be thought of as a prepayment for goods or services that a person or company is expected to produce for the purchaser.