The Accountant of Delta Inc

question 76

Multiple Choice

The accountant of Delta Inc.failed to make an adjusting entry to record $6,000 of unearned service revenue that has now been earned.Assume the unearned revenue was initially recorded as a liability.Which of the following statements is true?

• A)The total revenue will be overstated.
• B)The total revenue will be understated.
• C)The total expenses will be overstated.
• D)The total expenses will be understated.

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Definitions:

Severe Head Injury

A major trauma to the head that can result in significant damage to the brain, often requiring immediate medical intervention.

Respiratory Arrest

Respiratory arrest is a critical condition that occurs when breathing completely stops, requiring immediate medical intervention to restore respiration.

Concussion

A jarring injury to the brain; the most common type of head injury.

Jarring Injury

A type of injury typically caused by a sudden and forceful impact, often leading to concussion or other trauma.