What is Unearned Profit?

Question

What is Unearned Profit?

Answer 1

I think you are asking this question from accounting point of view.

see this example.

you hold 100 shares of reliance as on 31.03.2008.

your cost is 2000/- per share.

but stock is valued at 2500/- as on 31.03.2008.

so as on 31.03.2008 your unearned profit will be 500/- per share.

but you cannot account for an un earned profit. but you need to account for un earned losses if any.

Answer 2

Interest, dividends, capital gains, gambling winnings, social security paymnts, pensions, unemployment compensation

Answer 3

Profits that your investments earn if you did not work to earn the money. Examples:  Profits from stocks or royalties.

Answer 4

Earned income is wages and self employment income.

Unearned income is interest, dividend, capital gains.