The Unearned Revenue Account Was Not Adjusted for Work Performed

question 122

Multiple Choice

The Unearned Revenue account was not adjusted for work performed in the current period. What is the effect of this error?

• A)The assets will be understated and expenses will be understated.
• B)The assets will be overstated and liabilities will be overstated.
• C)The liabilities will be overstated and revenues will be understated.
• D)The liabilities will be understated and revenues will be understated.

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