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:

Confidence Interval

An interval of values, obtained from sample observations, that is likely to include the actual population parameter within a specified confidence level.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a higher standard deviation indicates greater variability.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, with a certain level of confidence.

Population Mean

The average value of all the elements in a population, representing the central tendency of that population.