How would proceeds received in advance from the sale of nonrefundable tickets for the Super Bowl be reported in the seller's financial statements published before the Super Bowl?
A) Revenue for the entire proceeds.
B) Revenue less related costs.
C) Unearned revenue less related costs.
D) Unearned revenue for the entire proceeds.

Question

Quizplus · Accepted Answer

The proceeds received in advance for nonrefundable tickets are considered unearned revenue because the service (in this case, the Super Bowl event) has not yet been provided. This amount is reported as a liability on the balance sheet until the event occurs and the revenue is earned.

How Would Proceeds Received in Advance from the Sale of Nonrefundable