If Unearned Revenues Are Initially Recorded in Revenue Accounts and Not

question 74

Multiple Choice

If unearned revenues are initially recorded in revenue accounts and not all the related services been performed at the end of the accounting period, the failure to make an adjusting entry will cause

• A) liabilities to be overstated.
• B) revenues to be understated.
• C) revenues to be overstated.
• D) accounts receivable to be overstated.

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Definitions:

Ostracism

The social or physical exclusion of an individual or group from a society or group.

Narcissism

A personality characteristic involving exaggerated feelings of self-importance, a need for admiration, and a lack of empathy.

Relationship Difficulty

Challenges or problems encountered in romantic, familial, or other personal associations.

Sexual Dysfunction

A problem occurring during any phase of the sexual response cycle, preventing the individual or couple from experiencing satisfaction from sexual activity.