Unearned Revenue Was Not Adjusted to Show $3,000 of Revenue

question 162

Multiple Choice

Unearned revenue was not adjusted to show $3,000 of revenue earned during the current period. What is the effect of this error on the balance sheet?

• A)Liabilities are overstated.
• B)Liabilities are understated.
• C)Assets are overstated.
• D)Assets are understated.

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Definitions:

Brand Personality

The human-like traits and characteristics attributed to a brand, shaping consumer perceptions and relationships with the brand.

Perceptual Selectivity

The cognitive process that leads individuals to attend selectively to certain stimuli in the environment while ignoring others.

Collective Unconscious

A term coined by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience, shared among individuals of the same species.

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious, archetypes, and dream analysis.