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Business, 12.03.2020 00:39 angelina0miles

Which of the following accounting entries would you MOST expect to accompany a $2,500 increase in cash, and why? A : A $2,500 decrease in unearned service revenue, because unearned service revenue is considered an asset no matter when it is received. B : A $2,500 increase in notes payable, because this increase in stockholders’ equity would need to be offset by a corresponding increase in assets. C : A $2,500 increase in unearned service revenue, because unearned service revenue is considered a liability until the service is actually performed. D : A $2,500 decrease in notes payable, because this reduction in liabilities would need to be offset by a corresponding increase in assets.

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