Cash coming in does not always mean revenue going up.
| Cash | 1,050 | ||
| Sales | 1,000 | ||
| Sales taxes payable | 50 |
| Cash | 120,000 | ||
| Unearned ticket revenue | 120,000 |
collected from a customer was never the seller's to keep — it is a liability the whole time, owed to the government until remitted.
works the same way from a different angle: cash for tickets, subscriptions, or gift cards arrives before the seller has actually delivered anything. Revenue is recognized only as each game is played, each issue ships, each card is redeemed.