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.

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