If a Company Fails to Adjust an Unearned Rent Revenue

question 164

Multiple Choice

If a company fails to adjust an Unearned Rent Revenue account for rent that has been earned, 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.

---

Definitions:

Parent Effectiveness Training

a program designed to teach parents skills to communicate more effectively with their children, solve family problems, and use discipline that teaches responsibility.

Parents

Guardians or caretakers responsible for raising and providing for their children, whether biologically related or not.

Children

Young human beings who are not yet adults, characterized by rapid physical and psychological development.

Evidence-based Strategy

Approaches or interventions that are backed by scientific research evidence to be effective.