Question

Recording season ticket monies received in advance as unearned revenue would be an example of a:

a) Prepaid Expense
b) Accrued Expense
c) Prepaid Revenue
d) Accrued Revenue

Answer 1

Recording season ticket monies received in advance as unearned revenue is an example of prepaid revenue.

Step-by-step explanation:

Recording season ticket monies received in advance as unearned revenue would be an example of prepaid revenue. Prepaid revenue is money received for goods or services that have not yet been delivered or rendered. In this case, the revenue from the season tickets is received before the games have been played, so it is considered unearned until the games are played.