Use the Following Information for Questions Below

question 42

Multiple Choice

Use the following information for questions below
Magic Mountain accounts for revenues using the contract-based approach.It operates a ski resort in the Rocky Mountains of Alberta.They sell three types of ski tickets.Season tickets are sold throughout the year,and entitle the holder to ski any day all season long.They are non-refundable.Daily tickets are sold at the mountain and are only valid for the day they are sold.Corporate group tickets are sold throughout the year.The buyer receives a package of 20 daily ticket coupons at a discounted price and the coupons can be redeemed for a day of skiing any time during the season.The skier needs to present the coupon for a ticket on the desired ski day.Unused tickets (coupons) expire at the end of the season and are non-refundable.
-When should Magic Mountain recognize revenue for the season tickets?

• A)at the time of sale
• B)on the day the mountain first opens for skiing
• C)throughout the ski season
• D)at the end of the ski season

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