Deferred Revenues and Current Liabilities

This set of flashcards reviews key concepts related to deferred revenues and current liabilities, including definitions, specific entries related to ticket sales, and the recognition of revenue.

Deferred Revenues

Cash received before goods are delivered or services are rendered, often seen with gift cards or subscriptions.

Unearned Revenue

A liability account representing revenue received before it is earned.

Current Liabilities

Obligations that a company expects to settle within one year.

Current Maturities of Long-Term Debt

The portion of long-term debt that is due within the next year, classified as a current liability.

Recognition of Revenue

The process of recording revenue in financial statements when it is earned.

Entry for sale of season tickets

Cash 500,000; Unearned Ticket Revenue 500,000 (To record sale of 10,000 season tickets).

Adjustment for earned ticket revenue

Unearned Ticket Revenue 100,000; Ticket Revenue 100,000 (To record football ticket revenues earned).