An Architecture Firm Earned $2,000 for Architecture Services Provided with the Fee

question 202

Multiple Choice

An architecture firm earned $2,000 for architecture services provided with the fee to be paid in the future.No entry was made at the time the service was provided.If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:

• A)revenues to be overstated.
• B)net income to be overstated.
• C)liabilities to be understated.
• D)revenues to be understated.

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Definitions:

Employees

Individuals who are hired by a company to perform specific duties in exchange for compensation.

Marketing Proposal

A document outlining a marketing strategy and proposed actions for a specific project or campaign.

Cost Effective

A measure indicating that the best possible outcome has been achieved with the least amount of expense or effort.

Accounting Information

Financial data and records about an organization's transactions and financial condition, which are used in making business decisions.