Describe What Is Meant by Unearned Revenues and Give Two

question 20

Essay

Describe what is meant by unearned revenues and give two examples.

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Definitions:

Seasoned Equity

Refers to additional equity issued by a company that has already had securities publicly traded.

Rights Offering

A financial offering in which a company grants existing shareholders the right to buy additional shares at a discount to the market price before the new shares are offered to the public.

Term Loans

Term loans are monetary loans that are repaid in regular payments over a set period of time, typically used for financing specific assets or projects.

Direct Business Loans

These are loans offered directly from a lender to a business without the use of intermediaries. This can provide more straightforward access to capital for businesses.