Answer is true.
Unearned income is the money received by a person or the business for the service or the product that has yet to be produced or to be delivered. It is a "prepayment" for the products or the services that a person or the corporation is anticipated to provide to the buyer at certain later period. As a result of this prepayment, the seller owes the income collected until the commodity or service is delivered. This liability is classified as current since it is likely to be settled within a year.
Receiving payments early benefits a firm since it boosts cash flow, which can be used for a number of corporate activities.
Therefore, the statement given is true.
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