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:

Job Performance

The level to which an employee successfully fulfills the roles, responsibilities, and tasks of their job.

Wage Incentive Plans

Compensation strategies designed to motivate employees by tying payments to performance or productivity levels.

Merit Pay Plans

Systems that attempt to link pay to performance on white-collar jobs.

Whole Foods

An American supermarket chain specializing in organic and natural foods.