What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?

Name: What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?
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Question

Quizplus · Accepted Answer

When rent is recognized as earned, it increases revenue, which in turn increases net income. The liability (unearned revenue) decreases as it is recognized as earned revenue.

What Is the Effect on the Accounting Equation When a Company