Usually financial statements refer to the balance sheet, income statement, statement of comprehensive income, statement of cash flows, and statement of stockholders’ equity. Unearned Revenues is a liability account that reports the amounts received by a company but have not yet been earned by the company. Interest Payable is a liability account that reports the amount of interest the company…

Recognizing and reporting revenue are critical and complex problems for accountants. Many investors also report their income, and the difference between net and gross revenue for a small business can have significant income tax repercussions if mishandled. There are many gray areas in both recognition and reporting, but ultimately, all earned income from sales transactions falls into gross or net…