Unearned revenues are generally revenues that have been earned and received in cash revenues that have been earned but not yet collected in cash liabilities created when a customer pays in advance for products or

Unearned revenues are general revenues that Liabilities created when a customer pays in advance for products or services before the revenue is earned

If a client pay us for our service in advance, we now have an obligation to provide services that we must fulfill in the future.

In accounting, we could consider this obligation as a liability which will be recorded in credit when it increased.