Airlines do not record revenue when a ticket is sold,but wait to record revenue until the actual flight occurs.

Question

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Airlines follow the accrual accounting method where revenue is recorded when the service is provided. Therefore, airlines do not record revenue when a ticket is sold but wait to record revenue until the actual flight occurs. This is because if a flight is cancelled or rescheduled, the airline may have to refund the ticket or adjust the revenue accordingly.

Airlines Do Not Record Revenue When a Ticket Is Sold,but