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Assume that instead of using the revenue recognition method described on page 9, Costco used the method of recording its membership fees as revenue upon

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Assume that instead of using the revenue recognition method described on page 9, Costco used the method of recording its membership fees as revenue upon collection of the fees. What would the effect of such an accounting treatment be on the following items (state your answer as overstated by. . ., understated by. . ., no effect): Current Assets Current Liabilities Cash Flows from Operations Net Income Retained Earnings [5 marks]

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