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What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is...

What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements?

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Answer:

What types of industries have unearned revenue?

The industry we can see is travel industry like airlines,railways where they gather the sum for clients ahead of time for the movement dates which happen in later.

Why is unearned revenue considered a liability?

It is considered as liability since it the income which we have not earned but rather gathered ahead of time implies obligation for the organization.

When is the unearned revenue recognized in the financial statements?

When the cash is gathered from them in that time it is recognized.

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