Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

CFA Events Calendar

View full calendar

Recommended Discussions

See how our partners can help you ace your CFA exams.

FRA - Understanding Balance Sheet - Revenue Recogniton

This is one of the questions under concept checkers whose answer i didn't seem to agree with or completely understand. So i am putting it here to get everyone's views.

Q. How should the proceeds received from the advance sale of tickets to a sporting event be treated by the seller, assuming the tickets are nonrefundable?

A. Unearned revenue is recognized to the extent that costs have been incurred.
B. Revenue is recognized to the extent that costs have been incurred.
C. Revenue is deferred until the sporting event is held.




The correct answer is C.
All my vices are devices.

Comments

Sign In or Register to comment.