If a Company Fails to Adjust an Unearned Rent Revenue

question 164

Multiple Choice

If a company fails to adjust an Unearned Rent Revenue account for rent that has been earned, what effect will this have on that month's financial statements?

• A) Assets will be understated and revenues will be understated.
• B) Liabilities will be understated and revenues will be understated.
• C) Liabilities will be overstated and revenues will be understated.
• D) Assets will be overstated and revenues will be understated.

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Definitions:

Brightness

The perception of how light or dark a color appears; can also refer to the overall intensity of light sources.

Hue

A dimension of color that is determined by the wavelength of light; essentially, the aspect of color that is described as red, blue, green, etc.

Bipolar Neurons

A type of neuron characterized by having two extensions (one dendrite and one axon) branching from opposite sides of the cell body, commonly found in sensory systems.

Optic Neurons

Nerve cells in the visual system that transmit information from the eyes to the brain.