FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 corporate tickets
redeemed?
O at the time of sale
O on the day they are redeemed for a ticket
O throughout the ski season
O at the end of the ski season
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Transcribed Image Text: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 corporate tickets redeemed? O at the time of sale O on the day they are redeemed for a ticket O throughout the ski season O at the end of the ski season
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