Question: Warner Company received $ 4 8 , 0 0 0 cash in advance for services to be performed over the one - year period from

Warner Company received $48,000 cash in advance for services to be performed over the one-year period from September 1,2015 through August 31,2016. Using a horizontal financial statements model, which of the following statements does not correctly reflect the effect of this transaction when Warner Company collects the cash?

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