If a Company Fails to Adjust an Unearned Rent Revenue

question 218

Multiple Choice

If a company fails to adjust an Unearned Rent Revenue account for revenue that should be recognized, what effect will this have on that month's financial statements?

• A)Assets will be understated and revenues will be understated.
• B)Liabilities will be understated and revenues will be understated.
• C)Liabilities will be overstated and revenues will be understated.
• D)Assets will be overstated and revenues will be understated.

Identify the role and benefits of a professional employer organization (PEO) for small organizations.

Understand the dynamic between human resources, employee conduct, and departmental responsibility.

Analyze the factors contributing to increased competition in health care.

Distinguish between line and staff activities and their importance in organizational structure.

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Definitions:

External Benefit

A benefit that people other than the consumer or producer enjoy, resulting from a transaction or activity.

Economic Efficiency

A condition in which all available resources are utilized in the most effective manner to satisfy society's needs and wants, minimizing waste and maximizing value.

Market Price

The current market value at which an asset or service is up for sale or purchase.

External Benefits

Positive effects experienced by those not directly involved in an economic transaction.