Listed below are seven corporations that receive cash from customers prior to earning revenue: America West Corporation.................
Question:
Listed below are seven corporations that receive cash from customers prior to earning revenue:
America West Corporation................. (airline)
The New York Times Company............... (Newspaper)
Carnival Corporation.................... (Cruise Company)
Devry, Inc...................... (For-profit technical college)
Clear Channel Communications, Inc............ (Radio broadcasting)
AFLAC Incorporated................. (Health insurance)
Bally Total Fitness Corporation............... (Fitness club)
a. Listed below are the accounts used by these corporations to report unearned revenue:
Deferred Advertising Income.............Unearned Premiums
Air Traffic Liability................Unexpired Subscriptions
Deferred Member Revenues............Deferred Tuition Revenue
Customer Deposits
Match each corporation with the account title it uses to report unearned revenue.
b. Apply the realization principle to explain when each of these corporations converts unearned revenue to earned revenue.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello