Unearned revenue is a(n) liability account and carries a normal credit balance.
Unearned revenue refers to a liability account that reports sums got ahead of time of giving merchandise or administrations. At the point when the merchandise or administrations are given, this record adjust is diminished and an income account is expanded. As an organization or company earns the income, it decreases the adjust in the unearned revenue account (with a charge) and builds the adjust in the income account (with a credit). The unearned revenue account is typically classified as a current liability on the balance sheet.
