Magazine subscriptions and airline ticket sales both result in unearned revenues.

Name: Magazine subscriptions and airline ticket sales both result in unearned revenues.
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Question

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Magazine subscriptions and airline ticket sales both result in unearned revenues because the revenue is received before the service is provided. The company has an obligation to deliver the service at a later date, which means the revenue is not yet earned. Once the service is provided, the revenue becomes earned.

Magazine Subscriptions and Airline Ticket Sales Both Result in Unearned