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:

Chain Of Command

The hierarchical structure in an organization that outlines authority and responsibility, directing how orders are passed down from top-level management to lower-level employees.

Managing Change

The process of planning, implementing, and monitoring changes in organizations to improve efficiency or effectiveness.

Effective Organizations

Organizations that achieve their goals efficiently and effectively by optimizing processes and ensuring employee satisfaction and engagement.

Changing Environment

Refers to the dynamic and evolving external and internal conditions that affect organizations and individuals, necessitating adaptation and flexibility.