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.

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Definitions:

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