The Accountant of Omega Company Failed to Make an Adjusting

question 221

Multiple Choice

The accountant of Omega Company failed to make an adjusting entry to record $6,000 of unearned service revenue that has now been earned.Assume the deferred 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:

Eye Care

The practice of maintaining the health of the eyes through routine checkups, treatment, and preventive measures.

Canthus

The angular junction where the upper and lower eyelids meet, either on the side near the nose (medial canthus) or on the side away from the nose (lateral canthus).

Inner Canthus

The corner of the eye where the upper and lower eyelids meet nearest to the nose.

Commercial Bath

A bath product or facility designed for public or mass use, often marketed for relaxation or therapeutic purposes.