MGMT 20000 Lecture Notes - Lecture 9: Caribbean Airlines, Revenue Recognition, Matching Principle
16 Sep 2018
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Document Summary
Caribbean airlines collected cash on february 4 from the sale of a ticket to a customer on january 30. When is the entry made for the flight: expense reporting. Expenses are reported in the same period as the revenues they help generate iclicker questions: a concert promoter received ,000 in cash deposits from students in. September for a concert to be held in december. The promoter records deferred revenue in september. Sale of a product on credit: trans american airlines, inc. flies throughout north america employing a strategy of short flights using smaller aircrafts to increase efficiencies and utilization. The company"s policy is to provide a cash refund to customers for unused aircraft tickets. When the plane arrives at its destination. Matching: jw enterprises, co. inc. orders copier paper in october. The paper was received and used in november. Expenses are recorded when the cost is used to help earn revenue.
