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.

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Definitions:

Carboxylate Ion

A negatively charged ion (anion) that results from the deprotonation of a carboxylic acid's hydroxyl group.

Strongest Acid

Refers to an acid with the highest tendency to donate a proton (H+) in a solution, often having a very low pH value.

p-Nitrobenzoic Acid

An aromatic compound derived from benzoic acid with a nitro group positioned at the para (opposite) position; used in organic synthesis.

Major Organic Product

The primary product formed in the highest amount during a chemical reaction involving organic compounds.