Do you agree or disagree on this article box, Give couple reasons to support in your words? Unearned revenue is the money received in advance for services or products that are not yet provided to the customer. It is a prepayment for goods or services by the customer or purchaser that will be delivered later. Unearned revenue is a prepaid expense for the customer because they have paid in advance for the services that they haven't yet received. A prepaid expense is a type of asset on the current assets section of the balance sheet. These are payments made in advance to receive products or services at a later date.Prepaid expenses are initially recorded as an asset but gradually expensed out in the income statement when the services are received over time