(LIAA17/27) Exploring Client Advisory Services - Unearned Income & Prepaid Expenses
2026-09-02 11:20 - 12:10 (America/Detroit)
Event Description
In most industries, it is normal to get paid after a job is done. However, what do you do if someone pays you ahead of time? The job is not done yet, so you can’t recognize the revenue. Also, have you ever had to make a deposit on something ahead of time? If so, then you can’t recognize the expense yet, since it has not been incurred. These situations happen all the time, but many practitioners just getting started struggle to know what to do in these instances. In this course, we will be talking about unearned income and prepaid expenses. We will talk about how the accounting differs for cash and accrual basis taxpayers, and what to do on the tax return.
Objectives
State what the terms unearned income and prepaid expenses mean and when these situations come up. Identify revenue recognition and expense recognition applicable to unearned income and prepaid expenses. Recognize the tax implications of unearned income and prepaid expenses.
