If an Adjusting Entry Were Not Made at the End

question 119

Multiple Choice

If an adjusting entry were not made at the end of an accounting period to remove the earned revenue from the Unearned Revenue account,

• A) assets would be understated.
• B) owner's equity would be overstated.
• C) liabilities would be understated.
• D) liabilities would be overstated.

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Definitions:

Quorum

The least number of attendees required for a meeting's activities to be considered valid.

Proper Purpose

Acting with a legitimate objective, especially in the context of corporate governance where actions should align with the best interests of the company and its shareholders.

Shareholders

Individuals or entities that own shares in a corporation, making them part owners of the company with certain rights and responsibilities.

Proxy

A person authorized to act on behalf of another, especially in voting at a meeting or in corporate matters.