ABC Airlines Collects $300 for a Roundtrip Ticket from Chicago

question 84

Multiple Choice

ABC Airlines collects $300 for a roundtrip ticket from Chicago to Los Angeles.The flights will not occur until the next accounting period.How does ABC Airlines record the $300 collected in advance?

• A) A debit to Cash of $300 and a credit to Unearned Revenue of $300
• B) A debit to Unearned Revenue of $300 and a credit to Cash of $300
• C) A debit to Cash of $300 and a credit to Revenue of $300
• D) A debit to Revenue of $300 and a credit to Cash of $300

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Definitions:

Roger Williams

A Puritan minister in the early Colonial American period, founder of Rhode Island, and an early advocate for religious freedom and the separation of church and state.

Economic Equality

refers to a state of affairs in which all individuals within a society have similar economic opportunities, resources, and wealth.

Chesapeake Colonies

Refers to the English colonies in North America that were located around the Chesapeake Bay, notably Virginia and Maryland, in the 17th century.

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, historically significant for its early settlement by Pilgrims.