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Using Cash-basis accounting, how do we analyze the following transaction? The business received $4,000 for a service due two months later. ut a. Increase Asset
Using Cash-basis accounting, how do we analyze the following transaction? The business received $4,000 for a service due two months later. ut a. Increase Asset (Cash) and increase OE(Revenue) b. They don't record it! c. Increase Asset (Cash) and Decrease Liability (Unearned Revenue) d. Increase Asset (cash) and Increase Liability (Unearned Revenue) The correct answer is: Increase Asset (Cash) and increase OE(Revenue)
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
