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Term: Accounting -> Prepaid income
Term:

Prepaid income

Definition:

Also called unearned revenue, it represents money you have received in advance of providing a service to your customer. Prepaid income is actually a liability of your business because you still owe the service to the customer. An example would be an advance payment to you for some consulting services you will be performing in the future.

Related terms:

Expectation Gap

Reasonable assurance (in internal control)

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