If a Required Unearned Revenue Adjustment Had Not Been Made

question 57

Multiple Choice

If a required unearned revenue adjustment had not been made, the financial statements would have been affected as follows:

• A)net income understated, assets overstated, liabilities unaffected, and owner's equity overstated.
• B)net income overstated, assets unaffected, liabilities understated, and owner's equity unaffected.
• C)net income understated, assets unaffected, liabilities overstated, and owner's equity understated.
• D)net income overstated, assets overstated, liabilities overstated, and owner's equity unaffected.

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Definitions:

Fair Coin

A fair coin is a coin that has an equal probability of landing on heads or tails when flipped, implying no bias in its design or toss.

Record

A document or electronic file that preserves evidence of activities, transactions, or decisions.

Heads and Tails

Terms representing the two sides of a coin used in coin tosses to determine randomness or make decisions.

Event's Occurrence

A term referring to the instance or frequency of a specific event happening within a given timeframe or under certain conditions.