There is no difference between unearned revenue and deferred revenue because they both refer to advance payments a business receives for its products or services it’s yet to deliver or perform. Thus, they are items on a balance sheet you initially enter as a liability (an obligation to fulfill in the future) but later become an asset. […]

Moreover, further expenses are assigned to unsold products, which means that the actual amount of expenses reported on your income statement may end up being reduced, providing a higher net income. The various manufacturing or production costs related directly to the produced goods or other cost objects are what we refer to absorption costing as […]