If Unearned Revenues Are Initially Recorded in Revenue Accounts and Have

question 94

Multiple Choice

If unearned revenues are initially recorded in revenue accounts and have not all been earned at the end of the accounting period, then failure to make an adjusting entry will cause

• A) liabilities to be overstated.
• B) revenues to be understated.
• C) revenues to be overstated.
• D) accounts receivable to be overstated.

---

Definitions:

Core Beliefs

Fundamental, deeply held assumptions or convictions that shape how an individual interprets the world and themselves.

Automatic Thoughts

These are spontaneous, often involuntary thoughts that occur in response to specific situations, frequently negative or self-critical, and influence one's emotional state.

Alcohol Use Disorder

A health disorder defined by the lack of control over alcohol consumption, despite negative impacts on social relationships, work, or physical well-being.

Trigger

A stimulus that evokes a reaction or response, often used in the context of substance abuse and mental health to describe an event or situation that leads to a relapse or worsening of symptoms.