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14 June, 09:21

Subtracting a decrease in unearned revenue from net income eliminates the effect of recording revenue that:

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  1. 14 June, 09:36
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    If the decrease in unearned revenue is subtracted from net income, it will eliminate the effect of recording revenues that would have increased the Net income earlier. But since, the cash has already been received so there will be no effect on cash.
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