The Boston Red Sox receives cash from its season ticket holders in advance for the entire season.Under the revenue recognition principle,the Boston Red Sox should recognize the revenue from the season ticket holders
A) at the time the cash is received.
B) after the season is completed.
C) as each game is played.
D) in two equal installments,six months apart.

Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenue should be recognized when it is earned. For the Boston Red Sox, this means recognizing revenue as each game is played, since that is when the service is provided to the ticket holders.

The Boston Red Sox Receives Cash from Its Season Ticket