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:

Inhibit Action

The process of restraining or hindering oneself or others from taking certain actions.

Body Proportions

The relative measurements and distribution of body parts, which change significantly with age, especially during growth spurts.

Adult

A person who has reached the age of maturity, typically characterized by having achieved full physical development and legal responsibilities.

Child's Body

Refers to the physical form and structure of a child, encompassing growth patterns, health issues, and anatomical development.