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Therefore, you record this deferred revenue as a cash inflow in the operating section. Specifically, you adjust cash generated from operating activities upward by the amount of the deferred revenue. ... Therefore, you must adjust the operating cash flow downward by the amount of this earned revenue.
What else can I help you with?
What will a decrease a revenue and a increase liability?
I can think of nothing that will do that in one transaction. Revenue generally does not effect your liabilities. Revenue is an Owners Equity account and most transactions in revenue effect that, not liabilities. (there is one exception and it is explained later on.)Expenses decrease revenue, which in turn decreases retained earnings which effects owners equity.Dividends Paid decrease retained earnings, which in turns also effects owners equity.The only time any "revenue" has an effect on liabilities is if it is an "unearned" revenue. An unearned revenue is a liability, however, it "increases" your liabilities and increases your assets at the same time. Once the unearned revenue is "earned" it then increases your "revenue" and you decrease your liability.
Would service revenue appear on the balance sheet?
Service revenue will appear on the income statement as a revenue account. It will indirectly effect the balance sheet in that it will be accompanied by an increase in either cash, accounts receivable, unbilled revenue (assets) or a decrease in unearned revenue (liability).
What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
What statement most accurately explains the effect of competition among local gas stations on the price of gasoline?
The price of gasoline will decrease.
Which statement most accurately explains the effect pf competition among local gas stations on the price of gasoline?
The demand for gasoline will decrease. The price of gasoline will decrease. The supply of gasoline will increase. The price of gasoline will increase.
Which effect does a decrease in sunlight have on a pond?
.
How bronchial asthma effect on lung volume and capacity increase or decrease and why?
decrease -
A decrease in demand will have what effect on equilibrium price and quantity?
There will be a decrease in price and quantity.
What is the excess of loss reinsurance coverage effect on unearned premium?
If we're talking about P & C insurors, SSAP 62R states that when payments are made for prospective reinsurance, both written premium and earned premium are reduced. I take this to mean that the liability account 'Unearned Premiums' would not reflect any amount parenthetically for 'after deducting unearned premiums for reinsurance', but I don't have much confidence that I'm interpreting it correctly.
A decrease in supply will lead to an increase in the price which decreases demand thus lowering price Thus a decrease in supply has no effect on the price of a good Evaluate this statement?
Don't cheat on your Econ homework! $250, due to that most bond are issued indenominations of 1000 / by 4 = $250
What will be the effect of decrease in closing stock on gross profit?
i think Gross profit Will decrease
What is an if an then statement?
statement is a cause and effect statement. If addresses the cause and then address then effect. For example if I crave chocolate then I will have a mint instead. They are often used to cause change in habits.
