Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

Question

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Unearned Ticket Revenue is a liability account that records cash received for tickets sold but not yet earned. As events occur or services are rendered, the revenue is gradually recognized and earned. Therefore, the unearned ticket revenue account must be adjusted to show how much of the deferred revenue has been earned during the period. This adjustment is necessary for accurate financial reporting and to ensure that revenue is recognized in the proper accounting period.

Unearned Ticket Revenue Must Be Adjusted to Show How Much