# Revenue accounting internships: billing, cash and earned revenue

## A cash increase does not determine the unearned balance

For this fictional roll-forward, all new receipts are advances for future service, and all stated recognized revenue comes out of the unearned balance. There are no refunds, contract changes or other movements.

### Movements during the month

| Item | Amount |
| --- | --- |
| Opening unearned balance | $9,000 |
| New advance receipts | $6,000 |
| Revenue recognized from that balance | $4,000 |

## Your turn

Calculate the closing unearned balance. Why is it not $15,000?

## Your answer

[Write your approach here.]

## For your own application

Explain each movement rather than checking only that the final total balances.

Return to the guide for the worked answer and source notes:
https://internshipdeadlines.com/guides/revenue-accounting-internships