In a deferral adjustment for revenues collected in advance that are now earned:
A. the liability recorded when cash was received is increased by the adjustment for the revenue being earned.
B. a liability is increasing because cash will be paid for an expense in the future.
C. the liability recorded when cash was received is decreased by the adjustment for revenue being earned.
D. a liability is decreasing because cash is being paid for an expense incurred at the time of the adjustment.
Answer: C
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Indicate whether the statement is true or false.
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Answer the following statement true (T) or false (F)