Unearned Income (Noun)
Meaning 1
Personal income that you did not earn (e.g., dividends or interest or rent income).
Classification
Nouns denoting possession and transfer of possession.
Synonyms
Meaning 2
(accounting) income received but not yet earned (usually considered a current liability on a company's balance sheet).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company reported a significant amount of unearned income from subscription fees that would not be fulfilled until the following quarter.
- As a magazine publisher, we have to account for unearned income from annual subscription payments, which are recorded as a liability on our balance sheet.
- The company's balance sheet showed a substantial amount of unearned income from pre-paid services that had not yet been rendered.
- Unearned income from advance ticket sales for the upcoming concert series was listed as a current liability on the event promoter's financial statements.
- The software company recognized unearned income from upfront licensing fees, which would be earned over the course of the next two years.