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Netflix required users to pay all of the monthly subscription plan a year in advance resulting in $120 in deferred revenue. How does this affect

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Netflix required users to pay all of the monthly subscription plan a year in advance resulting in $120 in deferred revenue. How does this affect the balance sheet before the first month? (35\% Tax Rate) Cash is up 120 Accounts Receivable is up 120 dollars No changes to the income statement Deferred Revenue is up 78 dollars

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