When it delivers the digital camera, XYZ immediately recognizes $ 162 of previously unearned revenue
from the gift card.
Similarly, the effects of the beginning and ending balances of unearned revenue
are opposite upon conversion as well (ending balance subtracted and beginning balance added).
Although students might think of liabilities as unfavorable because they represent an obligation to sacrifice resources in the future, an increase in this unearned revenue
account portends increased sales in the future as these cards are redeemed (or expire and contribute to increases in breakage revenue estimates).
Gemstar's main business is providing a print and onscreen TV listings guide; one of its chief faults was booking unearned revenue
from lawsuits it filed against rivals for allegedly violating its patents.
Analysts said they were encouraged by some signs of health, such as a sharp rise in unearned revenue
that points to bigger revenues down the road, and quarterly revenues that beat the lowered forecast.
In this situation, the net investment in the lease is correctly stated, but both the gross investment in the lease and unearned revenue
are overstated due to double counting the initial direct costs.
, which comes from sales of multi-year deals that will be recognised in the future, was $22.
Generally Accepted Accounting Principles (GAAP) and Unearned Revenue
, a measure of future sales, was $15.
The increased period-over-period loss can be mainly attributed to a drug development agreement that was mutually terminated by the company and another party and as a result, unearned revenue
of approximately USD1.
lt;p>And Liddel in October said that unearned revenue
and plentiful cash on hand, both of which remain strong, would "allow us to weather any economic recession in relatively better terms than most.
Typical examples of unearned revenue
are magazine subscriptions, insurance premiums, school tuition, or a retainer fee received by an architect or other service professional.
Unallocated and other reflects royalties paid by equity affiliates, other operating revenues, external shipping and handling fees, and the impact of unearned revenue
- which comes from multiyear contracts that isn't recognised in the current period and indicates future sales - was also higher than analysts projected.
General Fund Balance Sheet December 31, 2001 and 2000 Assets 2001 2000 Cash $251,699 $127,094 Accounts receivable 233,624 197,429 Prepaid expenses 60,935 107,760 Book inventory 574,344 519,922 Due from interfund 116,143 174,629 Property and equipment, at cost, less accumulated depreciation: 2001 - $1,197,334 2000 - $1,313,675 371,965 431,745 $1,608,710 $1,558,579 Liabilities and Fund Balance 2001 2000 Liabilities/deferred revenue: Accounts payable and accrued expenses $125,395 $128,338 Unearned revenue
from dues and sales 726,935 673,861 Fund balance 756,380 756,380 $1,608,710 $1,558,579 Revenues December 31, 2001 and 2000 2001 2000 Foundation 0.