If an Adjusting Entry Is Not Made for an Accrued

question 96

Multiple Choice

If an adjusting entry is not made for an accrued revenue,

• A) assets will be overstated.
• B) expenses will be understated.
• C) stockholders' equity will be understated.
• D) revenues will be overstated.

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Definitions:

Contract

An agreement between two or more parties that is legally binding and creates reciprocal obligations that can be enforced by law.

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Decorative material used to cover and adorn the interior walls of homes, offices, and other buildings.

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A device or system for recording incoming telephone messages when the recipient is unable to answer the phone.

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Compulsion, force, or undue pressure exerted upon a person to coerce them into performing an act against their will.