A Professional Sports Team Sells Season Tickets Prior to the Beginning

question 35

Multiple Choice

A professional sports team sells season tickets prior to the beginning of the season. In the current year, the team sold $500 000 of tickets. At the end of the fiscal year, six of the ten games covered in the season ticket subscription had been played. The amount needed to be adjusted to deferred revenue is:

• A)$500 000
• B)$200 000
• C)$300 000
• D)$0

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Definitions:

Socially Desirable

Something that is socially desirable is valued and sought after in a society because it promotes the general welfare or aligns with societal norms and values.

Allocate Resources

The process of distributing available resources among various projects or units in order to achieve strategic goals effectively.

Internalize

The process by which a company takes into account the external costs (or benefits) of its activities, usually environmental, by incorporating them into its business decisions and cost structures.

Market Supply Curve

A graphical representation of the relationship between the price of a good or service and the amount of it that suppliers are willing to offer for sale at any given price level.