unearned income
Definition 1
Accounting: Income received before a good is sold or a service is provided. Unearned income is classified as a current liability on the balance sheet until it is recognized as earned income during the accounting cycle.
Definition 2
Taxation: Income derived from means other than the provision of personal efforts, such as that derived as dividends, interest, or rent. Pensions and royalties, however, are not considered earned income.
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