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#cfa-level-1 #reading-23-financial-reporting-mechanics
Unearned revenue (or deferred revenue ) arises when a company receives cash prior to earning the revenue.
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Unearned revenue (or deferred revenue ) arises when a company receives cash prior to earning the revenue. In the IAL illustration, in Transaction 5, the company received $1,200 for a 12-month subscription to a monthly newsletter. At the time the cash was received, the company had an obligat


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