Failure to Make an Adjusting Entry to Recognize Service Revenue

question 154

Multiple Choice

Failure to make an adjusting entry to recognize service revenue receivable would cause which of the following?

• A) an overstatement of assets, profit, and shareholders' equity.
• B) an overstatement of assets and shareholders' equity and an understatement of profit.
• C) no effect on assets, liabilities, profit, nor shareholders' equity.
• D) an understatement of assets, profit, and shareholders' equity.

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Definitions:

Birth

The process of giving life to offspring by which an offspring is physically brought forth from the mother's body.

Social Smile

A developmental milestone where infants begin to smile in response to social interactions, typically emerging around 2 to 3 months of age.

Emerge

To come into view, become apparent or known, especially after being hidden or unknown.

Newborn

An infant in its very first weeks of life, especially before they are one month old.