Receipt from the sale of season tickets for a series of soccer matches' should be classified as _________________.

Accrued asset

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Accrued liability

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Unearned revenue

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Prepaid expense

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Solution

The correct option is D Unearned revenue
Unearned revenue is that revenue which is received in advance and services or goods are not provided against these. It has to be shown as liability and will be transferred to revenue account when the services are provided for.

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Similar questions

List-I	List-II
I. Carriage charges a new machine purchased for factory	(a) Revenue receipt
II. Legal expenses incurred in defending a case of violation of a provision of Factories Act	(b) Revenue expenditure
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Comment on the following statements as true or false, with a reason.

(i) Construction of school-building is a revenue expenditure of the government.

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f o r c h i l d r e n a n d

25

90

Receipts and Payments A/c is a summary of -

List-I	List-II
I. Premium paid for a lease hold property	(a) Revenue expenditure
II. Insurance premium paid for risks against accidental losses of properties(fixed assets)	(b) Capital receipt
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IV. Huge sales promotion expenses	(d) Capital expenditure

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