Unearned income falls under liabilities on a balance sheet. It...

Unearned income falls under liabilities on a balance sheet. It refers to prepayments that have been made by a customer, but has not yet been recognised under the accounting rules. e.g. if you book an airline ticket for 6 months from today with say Flight Centre, they would've received the payment to bring up their cash assets on a balance sheet, but they have not yet earned that revenue until the service has been provided so the amount you've paid flight centre will remain on their balance sheet as unearned revenue.