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Which of the following accounting entries would you MOST expect to accompany a $ 2 , 5 0 0 increase in cash, and why? A
Which of the following accounting entries would you MOST expect to accompany a $ increase in cash, and why?
A $ increase in unearned service revenue, because unearned service revenue is considered a liability until the service
is actually performed.
A $ decrease in unearned service revenue, because unearned service revenue is considered an asset no matter when
it is received.
A $ decrease in notes payable, because this reduction in liabilities would need to be offset by a corresponding
increase in assets.
A $ increase in notes payable, because this increase in stockholders" equity would need to be offset by a
corresponding increase in assets.
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