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An Pharoah Company received $2480 cash for legal services to be rendered in the future. The full amount increased the liability account Unearned Service Revenue.

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An Pharoah Company received $2480 cash for legal services to be rendered in the future. The full amount increased the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjustment is made, this would cause revenues to be understated. expenses to be overstated. O liabilities to be understated. net income to be overstated

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