When revenue is earned before the receipt of cash,an adjustment that increases a receivable and decreases a liability account is recorded.

Name: When revenue is earned before the receipt of cash,an adjustment that increases a receivable and decreases a liability account is recorded.
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Question

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When revenue is earned before the receipt of cash, an adjustment is recorded that increases a receivable (an asset account) and increases revenue (an income statement account), not decreases a liability account.

When Revenue Is Earned Before the Receipt of Cash,an Adjustment