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A Company Receives a Year's Worth of Rent in Advance

Question 66

Multiple Choice

A company receives a year's worth of rent in advance. Which of the following statements pertaining to this event is NOT correct?


A) The company's assets will decrease.
B) The company's assets will increase.
C) The company's total equity will remain unchanged.
D) The company's liabilities will increase.

Correct Answer:

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