Listed are seven corporations that receive cash from customers prior to earning revenue.
Delta Air Lines, Inc. (airline)
The New York Times Company (newspaper)
Royal Caribbean (cruise company)
DeVry Education Group (for-profit technical college)
iHeart Communications, Inc. (radio broadcasting)
AFLAC Incorporated (health insurance)
a. Listed are the accounts used by these corporations to report unearned revenue.
Deferred Advertising Income.........Unearned Premiums
Air Traffic Liability.....................Unexpired Subscriptions
Deferred Member Revenues............Deferred Tuition Revenue
Customer Deposits
Match each corporation with the account title it uses to report unearned revenue.
b. Apply the realization principle to explain when each of these corporations converts unearned revenue to earned revenue.