True North Real Estate Management Failed to Adjust Its Unearned

question 147

Multiple Choice

True North Real Estate Management failed to adjust its Unearned Rent Revenue account for the $15,000 that had been earned during the current year.What effect does this omission have on the current year financial statements?

• A)Assets are understated by $15,000.
• B)Revenues are overstated by $15,000.
• C)Expenses are understated by $15,000.
• D)Liabilities are overstated by $15,000.

---

Definitions:

Luxury Yachts

Luxury yachts are high-end, luxurious boats that are often equipped with sophisticated amenities and are used for personal or commercial pleasure.

Cartel Members

Firms or countries that collaborate to control prices and production in an industry, acting together rather than competing, often to maximize collective profits.

Cartel Members

Individuals or entities that form an agreement to control prices and limit competition within a market.

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between businesses, to cheat or deceive others, typically by fixing prices or rigging markets.