Small businesses, especially in the service sector, may collect revenue in advance of delivering their offerings. For example, a tanning salon might sell a package of 12 sessions for an upfront ...

Many businesses receive advance payment for products and services. In such a case, the monies received are not earned income because the business will provide the products or services at a later date.

Earned income is the money you earn through work or services, while unearned income is the money you receive without actively working for it. Both are crucial for financial planning and ...