A Publishing Company Records the Subscriptions Paid in Advance by Its

question 103

Multiple Choice

A publishing company records the subscriptions paid in advance by its customers in an account called Unearned Subscription Revenue.If the company fails to make the end-of-period adjusting entry to record the portion of the subscriptions that have been earned,one effect will be an:

• A)Overstatement of equity.
• B)Overstatement of liabilities.
• C)Understatement of assets.
• D)Understatement of liabilities.
• E)Overstatement of assets.

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Definitions:

Affiliation

A sense of belonging and connection within a group or organization.

Power

The capability to control or affect how others act or how situations unfold.

Deficiency Needs

according to Maslow's hierarchy, are the basic requirements for human survival and psychological well-being, including physiological needs, safety, love/belonging, and esteem needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, in that order.