If an Adjusting Entry Is Not Made at the End

question 164

Multiple Choice

If an adjusting entry is 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)stockholders' equity would be overstated.
• C)liabilities would be understated.
• D)liabilities would be overstated.

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Definitions:

Pay Less Attention

Act of giving reduced focus or importance to something, potentially leading to overlooking or ignoring it.

Indeterminate Cleavage

Type of cleavage characteristic of deuterostomes; during early cleavage each cell has the potential of developing into a complete embryo. Compare with determinate cleavage.

Deuterostomes

A major lineage of animals characterized by embryonic development where the anus forms before the mouth, including vertebrates and several other phyla.

Protostomes

A group of animals characterized by developing the mouth earlier than the anus during embryonic development, including invertebrates like mollusks and annelids.