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The theory of minimal effects states that the
Unearned Revenue
Income received by a business for goods or services yet to be provided; considered a liability until the service or product is delivered.
Recognizes Revenue
The process of recording revenue in the financial statements when it is earned and realizable, following the accrual accounting principle.
Total Assets
The sum of all resources owned by a company, measured in terms of monetary value, as listed on the balance sheet.
Operating Expenses
Costs associated with the day-to-day operations of a business, excluding direct costs of producing goods or services.
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