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 represents revenue received in advance for goods or services that have not yet been provided. As the goods or services are provided, the revenue is earned and moves from the liability account to the revenue account. Therefore, unearned ticket revenue must be adjusted to show how much of the revenue has been earned during the period. This adjustment is necessary to accurately reflect the amount of revenue that has been earned and to properly report financial results.

Unearned Ticket Revenue Must Be Adjusted to Show How Much