Which of the following shows how the event "collected cash for services to be rendered in...

Question

Question

Answer 1

Answer #1

Cash collected for service to be rendered in future: The journal entry would be

Cash Debit and Liability Credit

Hence, there will ne affect on the income statement

Therefore, the correct answer is A.

Assets will increase as cash will increase

Liabilities will increase

No effect on equity and income statement

Cash flows will increase from operating activities

Answer 2

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