Unearned revenue is reported on the income statement by subtracting it from revenue.

Name: Unearned revenue is reported on the income statement by subtracting it from revenue.
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Unearned revenue is not reported on the income statement as revenue because it has not yet been earned. It is reported as a liability on the balance sheet until it is earned, at which point it is recognized as revenue on the income statement.

Unearned Revenue Is Reported on the Income Statement by Subtracting