Big Brother in 1984 by George Orwell - 1423 Words

Big Brother Big Brother is a term used in the book 1984 by George Orwell. This term is used to describe a person or an organization that gains total control over people’s lives, it exercises complete control by doing things such as, creating a new language, destroying history, taking away rights so the people become powerless and all sources of communication are recorded and stored by â€Å"Big Brother†. George Orwell predicted this would happen in his book 1984 he predicted that we would live in a society in which everything is controlled and monitored. Slowly but surely his prediction is becoming correct, we are losing rights, The National Security Agency (NSA) is spying on everything we do, all text messages, phone calls, emails, anything that goes through the internet or a wire is being recorded by the NSA, and the media is being controlled by the government, being allowed to say what they please, and whatever to keep our heads forwards and our eyes closed to the a trocity that is our government. There are many questions that need to be asked, and connections that need to be made, and those are not being provided by our government. This paper will determine the connections, answer the questions and answer one question, is america truly free? This paper will shed some light for the blind to see if we are truly free, or if the the government is controlling us, if the NSA is spying on us, if the police force is doing their job and many other things. We will know if we need toShow MoreRelatedGeorge Orwell s Novel, 1984, The Government, Or Big Brother1840 Words   |  8 PagesIn George Orwell s Novel 1984, the government, or Big Brother, monitors the people constantly, forcing them to adhere to laws that eliminate any individual freedoms or thoughts. Winston, the protagonist, lives in this society as someone who is against this oppression struggling to meet others who feel the same. He meets a woman named Julia who also a rebel, so both decide to have a forbidden relationship out of rebellion towards the party. Recruited by his co worker O’brien, Winston is able toRead More1984 Argument1249 Words   |  5 PagesGeorge Orwell’s book 1984 is a very interesting novel. The novel is set up in Airstrip One. In George Orwell’s book 1984 it has many situations. One of the many situations are that some people refer society as â€Å"Orwellian.† What does Orwellian mean? Orwellian means, of or related to the works of George Orwell ( especially his picture of his future totalitarian state.) People believe that Orwell is realistic and say his work part of our society now. George Orwell was a writer in the twentieth centuryRead More George Orwells Symbolism and Derivation for Nineteen Eighty-Four (1984)905 Words   |  4 PagesGeorge Orwells Symbolism and Derivation for 1984 George Orwells 1984 had a profound effect upon the way people thought during the mid 20th century. The book signified Orwells most complex novel which told the story of Arthur Koestler and the countless others who suffered because of the totalitarian governments in Eastern Europe (Meyers 114). When 1984 was published in 1949, the Cold War had just begun. The novels ending was pessimistic and thus seemed as an attack on communism. TheRead MoreA Look into Totalitarianism In 1984 by George Orwell1600 Words   |  6 PagesIn the novel 1984, George Orwell portrays a world that has been altered to a state of political control. The lives and thoughts of a population are controlled by the government in 1984. It is impossible to successfully rebel against this type of totalitarian society because of the many scare tactics that rebels have to bear. George Orwell uses 1984 to criticize the devastating effects of totalitarianism, and the dystopia of his scary visions for the future. With in the totalitarian society is fearRead MoreA Rhetorical Analysis on Nineteen Eighty-Four1044 Words   |  5 PagesRhetoric Bereket Kifle Composition 12 Honors Abstract George Orwell employs the usage of different rhetoric throughout 1984.  Ã‚  The rhetoric differs from describing the human body and its struggle to survive to the different crimes and how the citizens felt about them.  Ã‚  Also, within  1984  lies a warning from Orwell: to eliminate the caustic consequences of a communist government.  Ã‚  While Orwell served as part of the Indian Imperial Police in  Burma  during the 1920s, he examinedRead MoreCritical Analysis and Evaluation of 1984, by George Orwell.1487 Words   |  6 PagesGeorge Orwell 1984 The New American Library Copyright 1961 George Orwell George Orwell, whose real name was Eric Blair, was born in Bengal, India, in 1903. When he was eight years old, as it was customary, his mother brought him back to England to be educated. He was sent to a boarding school on the south coast, a school whose students were sons of the upper class. He was allowed in with lower tuition and not being from a wealthy background, he was subject to snobbery of the others at the schoolRead MoreTotalitarianism In George Orwells 19841028 Words   |  5 PagesTotalitarianism Used in 1984 A dystopia is a society which is characterized by misery, oppression, and unhappiness. Likewise, a totalitarian government neither allow parties to have different opinions nor freedom with a centralized government, therefore totalitarianism and dystopian societies are similar. In 1984, written by George Orwell, Big Brother is a dictator who gives the Oceanian population no personal freedoms and strictly dominates all of the country for their own selfish ways. Unlike OceaniaRead MoreMarxism: 1984 by George Orwell1405 Words   |  6 PagesMarxism In the Novel 1984 Throughout time, rulers and controlling governments have used the ideas of Marxism to take and maintain control over the working class. Even today ideas such as classism and commodification are used in countries such as North Korea and Syria to help governments rule over their citizens. In George Orwell’s 1984 the ideas of Marxism are used to oppress proletariats. The Party tricks the citizens of Oceania into thinking that their propaganda benefits the working class,Read MoreGovernment Surveillance And Totalitarianism In George Orwells 19841593 Words   |  7 PagesThe Correlation of Government Surveillance and Totalitarianism in 1984 During the production of 1984, author George Orwell never envisioned a tangible reality housing the society he constructed. He wrote the novel as a warning, a cautious exposà © showing those what could happen if society lost its sense of humanity; housed in a painfully relevant satire of totalitarian barbarism. In his novel 1984, George Orwell addresses the issue of government surveillance through his strategic use of point of viewRead MoreGeorge Orwell and Animal Farm and 19841008 Words   |  5 Pages George Orwell and Animal Farm and 1984 nbsp; George Orwell is only a pen name. The man behind the classics Animal Farm and 1984 was named Eric Arthur Blair and was born to a middle class family living in Bengal in 1903. Eric Blair got his first taste of class prejudice at a young age when his mother forced him to abandon his playmates, which were plumbers children (Crick 9). He could then play only with the other children in the family, all of whom were at least five years older or younger

Huntington s Disease ( Hd ) - 931 Words

Huntington s disease (HD) is basically neurological disorder that is triggered by a genetic mutation in the IT15 gene. Major characteristics of this disease are cognitive motor, psychiatric functions and advanced cell death in cortex and striatum. Certain important insights have emerged from the animal models that are related to the disease pathology and results of therapeutic strategies. A number of research studies have been conducted up till now and the majority of which have focused upon the use of toxin-induced models while studying the cell death, excitotoxicity and mitochondrial impairment. All of such models are based upon the quinolinic acid and 3-nitropropionic acid respectively. The huntingtin mutation was discovered in 1993 and this finding became the basis of newer models where similar genetic defect is incorporated in these newer models. It has been reported by Pouladi (2013) that the major reason behind the development of such animal models is revealing of causative ge ne in HD (Huntington s disease). The models that incorporate knock-in and transgenic rodents are true representative of pathology and HD progression. Advanced research has proved that production of genetic models in such species is really a difficult task, and in order to encrypt the gene mutation in specified brain areas, a more advanced model that can incorporate the viral vector can be an effective approach. HD is only one of a few trinucleotide rehash disarranges which are initiated by theShow MoreRelatedHuntington s Disease ( Hd )1250 Words   |  5 PagesStatement of Topic Huntington’s Disease (HD) is a genetic disorder in which the necrosis of cells in the brain causes early death [9]. The neurodegeneration of the brain leads to mechanical and psychological symptoms, which can present normally from 30 to 50 years of age or even earlier, which is referred to as Juvenile Huntington’s Disease [3,5,6]. Some mechanical symptoms of HD are change in gait, uncontrolled or sudden movement, abnormal face movement, turning the whole head instead of usingRead MoreHuntington s Disease ( Hd ) Essay764 Words   |  4 PagesHuntington’s disease (HD) is a late-onset, usually between 35 and 50 years old, neurodegenerative disorder prevalent in 3-7 per 100,000 people of European ancestry1. The disease, inherited in an autosomal dominant pattern2, is characterized by motor disturbance, intellectual decline, and psychiatric manifestations3. The disease is difficult to detect at an early stage of an individual’s life since its symptoms appear in the third to fifth decade of life. To better understand the disease, investigationsRead MoreHuntington s Disease ( Hd ) Is A Neurodegenerative Disease1289 Words   |  6 PagesHuntington’s disease (HD) is a neurodegenerative disease that affects roughly 10 individuals per 100,000 (Nopoulus, 2016). This disorder is normally associated with symptoms including motor impairment, namely slowed movements and random muscle contractions, as well as depression and cognitive dysfunction. However, another prominent symptom that has yet to be mentioned until recently is sleep disturbance and alteration of normal circadian rhythms. It is estimated that 60-90% of HD patients have sleepRead MoreGenetic Disease Is An Autosomal Dominant Neurodegenerative Disorder737 Words   |  3 PagesGenetic diseases are diseases that are passed on from parents to their offspring. An example of a genetic disease which can be inherited is Huntington Disease. Huntington Disease is an autosomal dominant neurodegenerative disorder with midlife onset characterised by psychiatric, cognitive and motor symptoms(G. Vonsattel and DiFiglia, 1998). The statistics for HD blah blah blah Like all genetic diseases, huntington s disease has a specific inheritance pattern. Huntington disease is an autosomalRead MoreHuntington s Disease : A Progressive Brain Disorder Caused By A Defective Gene1134 Words   |  5 PagesHuntington s Disease (HD) is a progressive brain disorder caused by a defective gene. This disease causes changes in the central area of the brain, which affect movement, mood and thinking skills. Nerve cells become impaired, causing several segments of the brain to fail. The disease disturbs movement, behavior and perception the affected people abilities to walk, think, reason and talk are slowly weakened to a point that they eventually become entirely dependent on other people for care. HD isRead MoreHuntington s Disease : A Dynamic, Neurological Disorder1632 Words   |  7 PagesHuntington s disease is a dynamic, neurological disorder. Tragically, it doesn t demonstrate manifestations until people have reached they’re 30 s or more. Children whose parent s have this genetic disorder have a 50-50 ( ) possibility of acquiring t he trait. History Huntington s disease was found by numerous researchers before George Huntington. For instance in the 1840 s HD was described in writing as a Chronic hereditary chorea by Dr Waters of Franklin N.Y., ( ) who found aRead MoreSymptoms And Treatment Of Huntington s Disease1350 Words   |  6 PagesHuntington s Disease Huntington s disease is an inherited neurodegenerative disease that is caused by a mutation on the HTT gene. It typically effects persons in their third to fifth decade of life and can be passed onto their children. Neurons in the brain waste away or degenerate in different areas causing the characterizing symptoms, such as dance-like movements and mental decline. Diagnosis and prognosis can be devastating to both individual and family. However, there are genetic tests thatRead MoreGenetic Testing And Mental Health Disorders1039 Words   |  5 PagesHuntington’s disease through human genome and family research. Diagnostic and presymptomatic testing is available by discovering a gene mutation for Huntington Disease (HD) and prepares persons who are at risk for Huntington Disease (HD) to ask for genetic testing. A multi-visit protocol is enacted when HD genetic testing is offered through HD testing centers, followed by education and counseling for those requesting to have HD gene testing. I will use this paper to define Huntington’s disease, choreaRead MoreHuntington s Disease And Its Effects831 Words   |  4 PagesHuntington’s Disease Huntington’s is named after George Huntington who was the first person to describe the disease in 1872. However it wasn’t until 1993 that the gene that causes Huntington’s was discovered. Huntington’s is an inherited progressive disease that affects the brain and causes severe cognitive decline. The result is involuntary movements, emotional disturbance, damaged perception and memory as well as overall lowered though processing ability. We know that Huntington’s is a geneticRead MoreResearch Paper on Huntingtons Disease1268 Words   |  6 PagesHuntington’s disease is a hereditary brain disorder that is progressive in neurodegeneration; which means, there is a loss of function and structures of one’s neurons. In the long run it results in the loss of both mental and physical control. The disease affects muscle coordination, cognition and behavior. It used to be known as Huntington’s chorea because it is the most common genetic disease that is the cause of abnormal twitching. Huntington s has an intense effect on patients, as individuals

Just in Time Concept Free Essays

string(84) " takes place over a period of time, into artificial segments \(reporting periods\)\." Financial AccountingS. Das Income Measurement and Accrual Accounting Recognition and Measurement in Financial Statements DEFINITIONS Revenues:inflows of assets or reductions in liabilities from selling goods and services Expenses:outflows of assets or increases in liabilities used up in generating revenues. Recognitionformal recording of an item in financial statements, in words and numbers Measurementquantify the effects of economic events numbers unit is money – dollars historical cost – recorded for simplicity, verifiability, reliability Current cost-relevant but less reliable Only an esti mate until item is sold Net income= Revenues-Expenses. We will write a custom essay sample on Just in Time Concept or any similar topic only for you Order Now Incomeamount of resources available for consumption at the end of a period and yet be as well off as it was at the beginning of the period. CASH BASIS Versus ACCRUAL ACCOUNTING So if we DEFINE PERIOD to be lifetime of a firm (which can only be defined for a firm with a finite life) then we are only interested in the earnings of a firm over its lifetime. In that case: a. just wait until the firm dissolves. b. Add up all the cash inflows over its lifetime other than those for sale of own stock. c. Add up the cash outflows over its lifetime other those for stock repurchase or dividends. d. Find the difference between cash inflows and outflows and YOU HAVE NET INCOME. e. THE ABOVE IS ALWAYS TRUE. However, if you DEFINE PERIOD TO BE ANY INTERVAL SMALLER THAN THE LIFE TIME when you wish to get information on earnings as intermediate feedback, then there is the following problem: -transactions may not be complete on a cash to cash basis – because the earnings process is continuous – Period1buy inventory for $5 Period2pay for inventory Period3sell and deliver inventory for $15 Period4receive payment from customer. KEY QuestionWhen should revenues and expenses be recognized? One possibility is the cash basis recognize revenues at time of receiving cash and recognize expenses at the time of paying cash. Example: A toy retailer starts business on January 1, 2000. The retailer Mr. XYZ pays two months rent in advance on his store for $2000. He also purchases and pays for toys worth $35,000. However, during the month of January, he sold no toys. During February, he sells all the toys he has for $45,000 but collects only $5000 of that in cash. He expects the neighborhood children to pay the remaining $40000 in March. JanFebruary Revenues—————– Less: Expenses Cost of toys—————– Rent—————- Total Expense—————- Income—————– Limitations of Cash basis 1. expenses are not aligned in time with the revenue that they produce. 2. recognition of revenue is unduly postponed. A Second possibility is the use of Accrual basis – depends upon when some critical event occurs. What happens to income (accrual basis) using same example? JanFebruary Revenues—————– Less: Expenses Cost of toys—————– Rent—————- Total Expense—————- Income—————– Comparing the Cash And Accrual Bases of Accounting -Basic difference one of timing Recognize Revenue whenRecognize Expense when Cash Basis cash is received cash is paid Accrual Basisrevenue is earned it is incurred Exhibit 4-2 transparency Accrualmatching of expenses with the corresponding revenues OR match resources used (expired assets- expenses)to generate revenue. The accrual concept forces accountants and managers to focus on changes in owner’s equity rather than merely reporting changes to the cash or other assets. The realization concept underlies the decision rules that accountants use in determining when revenues should be recognized and expenses matched to them. The Revenue Recognition Principle Revenue:Increase in Asset Or Decrease in Liability from Delivery of Goods Or Services Realized:Goods Or Services Exchanged for Cash Or Promise of Cash . Earned:Revenue earned when realization is complete or no significant obligations left How are Revenues recorded? †¢At the same time as cash is collected. †¢Before the time cash is collected. †¢After the time cash is collected. Possible Interpretations of Recognition Principle: Percentage of Completion:For long term projects, revenue recognized as stages are completed, based upon proportion of total cost incurred, Franchises: Initial fee recognized as revenue only FAS 45 â€Å"substantial performance† of its obligations BJ 32 Production MethodCommodities – Traded at established price; so revenue recognized when they are produced. Installment Method:opposite of production method: no reasonable basis to estimate collectability, so revenue on sale recognized as cash is collected Continuously:such as rent and interest The criteria used in accounting to decide the recognition of revenues is : †¢A firms has performed all, or a substantial portion, of the services it expects to provide. †¢The firm has received cash, a receivable, or some other asset whose cash equivalent it can objectively measure. Expense Recognition and the Matching Principle The matching concept relates revenues and expenses so that owner’s equity is neither overstated nor understated at any points in the steam of events that constitutes operations. Expensewhen an Asset Has No Future Benefit i. e. It Is Used Up [Or] a Liability Is Incurred. Matching:Associate Revenues with Costs (expenses) Necessary to Generate them UnexpiredSometimes not done with specific items of product sold, but with period in Assets which they were sold eg. sales clerks’ salaries are expensed in the period in which employees worked. Expired Some things never go through asset stage, since benefit is seen to expire as soon Assets as costs expended (purchased) = Period Costs; eg. utilities costs, telephone, fuel for vehicles (not asset) Two examples: 1. Expired asset versus 2. Expensing of benefits/ resources that never went through asset stage. A. Depreciation Expense estimated useful life and eventual salvage or resale value Manipulation to increase or decrease income Salvage deducted before calculating periodic expense because it is expected to be recovered and will remain an asset. B. Research ; DevelopmentDell Computer in its 1995 Annual Report list â€Å"Research, development and engineering† of $65,361,00 as operating expense on Income Statement. – an expense is an asset whose usefulness to the company is complete – it is deemed that R;D has no future benefit left hence out right expense without going through asset stage. For an accrual based company, Statement of Cash Flows provides information on Sources and Uses of Cash. Accrual basis necessary because we divide the earning of income, a process that takes place over a period of time, into artificial segments (reporting periods). You read "Just in Time Concept" in category "Papers" Example: In the 1995, Income Statement Maytag Corporation had a net loss of $20,476,000. Their Statement of Cash Flows showed an increase in cash equivalents of $30,811,000. Cash provided by operating activities was $319,979,000. How can a company with a net loss have a gain in cash? This is possible if expenses exceeded revenues since Income statement is on accrual basis. It contains revenue amounts that may not have been realized in cash (still in accounts receivable) and expenses that may not have been paid for such as depreciation, and unpaid purchases. Also look for income from continuing operations versus loss due to extraordinary items and disposal of existing business. (As was the case in Maytag 1995) Accrual Accounting and Adjusting Entries: at end of period – Four Types: 1. Deferred Expense: Cash Paid before Expense Is Incurred Asset created; as asset expires it becomes an expense, via adjusting entry Entry DuringAsset End of Expense period Cash period Asset eg. * prepaid rent becomes rent expense, a month at a time * Depreciation allocates cost of asset over its useful life – does not measure decline in value ? Based on estimates of salvage value and life of asset ?Periodic expense= [actual cost – est. salvage value]/estimated life ? debit is depreciation expense ?credit is not to asset account, which will always reflect cost, ? but to accumulated depreciation- contra account that is, an asset account with a credit balance 2. Deferred RevenueCash Received before Revenue Is Earned Liability Created Because Goods Or Services Still Owed EntryDuringCashEnd of Liability period Liability period Revenue ?Eg. unearned â€Å"the other company† from deferred expense entries ? for example, The landlord who received the prepaid rent has a deferred revenue ? liability is reduced, revenue increased, as time passes ?magazine subscriptions received in advance, earned as magazines mailed 3. Accrued LiabilityExpense incurred before Cash Is Paid Opposite of deferred expense EntryDuring-End of Expense period- period Liability Eg. taxes, payroll, utilities; interest for short term loan paid at maturity with principal 4. Accrued AssetRevenue Earned before Cash Is Received Opposite of deferred revenue EntryDuring-End of Asset period-periodRevenue ?both rent and interest are earned as time goes by, regardless of when cash received ? need adjusting entry if payment is not received. Exhibit 4-5 (text pp. 165) Example: P4-2 REVISITING THE ACCOUNTING CYCLE Steps taken to collect the necessary information to prepare financial statements (Exhibit 4-8) . Collect and Analyze 2. Journalize Events 3. Post to Ledger Accounts(Results in Unadjusted Trial Balance) 4. Journalize and Post adjustments(Results in Adjusted Trial Balance) 5. Prepare Financial Statements 6. Journalize and Post Closing Entries(Results in Post-Closing Trial Balance) 7. Post Closing Trial Balance 8. Optional: Reversing Entries The Closing Process: Two types of accounts: Balance Sheet= real accounts = permanent Income Statement= nominal accounts = temporary (Includes Dividend account) Purpose of closing entries:-Close temporary accounts -transfer net income (loss) to retained earnings Process of closing: Debit Each Revenue Account: Sum Up a Single Credit to Income Summary. Credit Each Expense Account, Sum Up a Single Debit to Income Summary. Debit Income Summary If It Has a Credit Balance (Company Had Net Income) ORCredit Income Summary If It Has a Debit Balance (Company Had Net Loss) Credit Dividend Account, Debit Retained Earnings Exhibit 4-9 (text pp. 171) Example 1:E4-23. Ben ; Jerry’s Example 2:Let us look at McDonald’s Corporation’s 1998 Statement of Income shown on Page 139 of your text. Notea. Retained Earnings at the beginning and end of 1998 were $12,569 and $13,879. million respectively. b. Total dividends paid to common and preferred shareholders were $239. 5 Use the numbers from the Income Statement to Reconstruct the relevant account balances. Then Close them to Income Summary and from there to Retained Earnings. EXAMPLE P4-10 Post-closing Trial Balance will only contain Balance Sheet accounts. When is a sale a sale? In an article concerning troubled MiniScribe Corporation (The Wall Street Journal September 12, 1989 – MiniScribe’s Investigators Determine That â€Å"Massive Fraud Was Perpetrated†. ) it was stated that â€Å" †¦ he company dramatically increased shipments to three warehouses, booking $56. 4 in sales and gross profit of $5. 4 million. † (Note that the warehouses being shipped to belonged to MiniScribe) The volume of shipments only called attention to the problem – it was not the problem. Problem is it is not Customer’s warehouse but MiniScribe’s – shipping goods to ones? own warehouse is not a sale – but a relocation of inventory – must be an arm’s length transaction. This was one among many violations – MiniScribe was also shipping bricks to an fictitious company, and recording them as sales revenue. 1. Claiming Tomorrow’s Profits Today, Forbes, October 17, 1988, p 78. Case 4-1:Ben ; Jerry’s Revenue Recognition – Initial Franchise Fee Footnote on 147 of text. FASB SFAS 45 allows franchisor to recognize initial franchise fee as revenue only when â€Å"substantial performance† of its obligations and when collection of the fee is reasonably assured. Revenue Recognition: The Company recognizes franchise fee as †¦.. when services required by the franchise agreement have been substantially performed†¦. 1. Consistent with SFAS 45. The footnote refers to certain mandatory services that the company promises to perform for the new stores. Performance of these services is the basis for recognizing the fee as revenue. Note that the footnote specifically uses the wording substantially performed. 2. The company recognizes the franchise fees as revenue in proportion to the stores for which the required services have been substantially performed. 3. Franchise fees are not large relative to net sales in any of the years. Franchise fees are less than 0. 4% of net sales in each of the three years. Unearned Revenue: Realizability Vs. Earned criteria – realized BUT has it been earned?. 1. Case 4-2:Gateway- Revenue Recognition Refer to page 30 of Gateway’s Annual Report, under â€Å"Summary of Significant Accounting Policies† 1. Gateway recognizes revenue from product sales when products are shipped. Revenue from separately priced extended warranty programs is deferred and recognized over the extended warranty period. 2. â€Å"Extended warranty programs† are contracts to service products for a period beyond the original warranty. These contracts are purchased for an additional amount above the product purchase price. . The revenue from the extended warranties is recognized over the warranty period because it is earned over the entire period, as coverage is provided. 2. Case 4-3: Sears, Roebuck, ; Company – Revenue from Service Contracts. 1. Under the accrual basis, revenue should be recognized when it is earned, rather than when cash is received. Since the retailer incurs costs to repair damages over the life of the service contract, the revenue from the contract is also earned over the life of the contract. 2. Revenue to be recognized each year: Year 1 Year 2Year 3 Sales Revenue Service Contract Total revenue Typically, for service contract you receive cash or payment, for future services, that creates a liability. Thus one has an unearned revenue account. In this particular example, the liability account would contain XXX at the end of year 1 and XX at the end of year 2 reported under current liability as unearned revenue on the balance sheet. Sears, Roebuck, ; Company 1998 Annual Report Footnotes to Revenue Recognition The Company sells extended service contracts with terms of coverage between 12 and 36 months. Revenue and incremental direct acquisition costs from the sale of these contracts are deferred and amortized over the lives of the contracts. Costs related to servicing the contracts are expensed as incurred. 3. American Airlines: 1996 total revenues of $17,753 million. Balance sheet reported ? Air traffic Liability? of $1,889 million. – unearned revenue (~~11%) from ticket sales. -when retired – Retired when ticket holders are provided transportation. -Refundability a factor -What if carrier cannot provide service due to strike or storm. -When is revenue earned ? – when ticket is bought when passenger boards – when plane takes off – when the round trip is complete. AMERICAN AIRLINES 1998 Annual Report (Summary of Significant Accounting Policies) (Note 1) PASSENGER REVENUES Passenger ticket sales are initially recorded as a component of air traffic liability. Revenue derived from ticket sales is recognized at the time transportation is provided. How ever, due to various factors, including the complex pricing structure and interline agreements throughout the industry, certain amounts are recognized in revenue using estimates regarding both the timing and the amount of revenue to be ecognized. Actual results could differ from those estimates. In 1998, American showed revenues of $17,449 million and recorded â€Å"Air traffic liability† of $2,163 million on its Balance Sheet. Time Warner Inc. According to Annual Report they publish 26 different magazines. At end of 19985 unearned subscription revenue was $741 million. -included in their is your paid subscription to Time for issues that you have yet to receive. -magazines are sold at different rates depending on how you subscribed and for how long. – how to keep track of when earned. when does the earnings process complete When subscription received – if main source of revenue is advertising. When production is complete and delivery is made. A combination of these two. Note that Time does not have difficulty to keep track since subscription price variations and customer records are all kept by computers – closely monitor the process from payment to through unearned revenue to delivery and revenue earned. Time Warner Inc. 1998 Annual Report (Note 1) The unearned portion of paid subscriptions is deferred until magazines are delivered to subscribers. Upon each delivery, a proportionate share of the gross subscription is included in revenues. E 4-81. AugustCash Subscriptions Received in advance (Unearned Revenue) To record collection of 900 subscriptions Assets =Liabilities+ Owner’s Equity 2. August 31. Unearned revenue Subscription revenue To record subscriptions earned during August. Assets=Liabilities+Owner’s Equity 3. Net income for the month of August would be under stated / overstated by XXX if the accountant forgot to make the entry to recognize revenue earned. (Self Note: Also see Magazine Subscription case) E 4 -9 How to cite Just in Time Concept, Essays