Posted: June 9th, 2016

What types of industries have unearned revenue?

What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements? Provide a specific example. Bonds are frequently issued at amounts greater or less than face value. Describe how the market interest rate, relative to the contractual interest rate, affects the selling price of bonds. Also, explain the rationale for requiring an investor to pay accrued interest when a bond is purchased between interest payment dates.