Problem:
Zeppelin Company received cash during January for services to be provided in February.
Required:
Which of the following statements does not accurately describe the impact on the financial statements when Zeppelin provides the services during February?
- Unearned revenues decreased and were debited.
- Revenues increased and were credited.
- Stockholders' equity will increase.
- Total assets will increase.
Note: Be sure to show how you arrived at your answer.