If a company fails to adjust an Unearned Rent Revenue account for revenue that should be recognized, what effect will this have on that month's financial statements?
A) Assets will be understated and revenues will be understated.
B) Liabilities will be understated and revenues will be understated.
C) Liabilities will be overstated and revenues will be understated.
D) Assets will be overstated and revenues will be understated.
Correct Answer:
Verified
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Q127: Adjustments for unearned revenue:
A)decrease liabilities and increase
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Q134: Unearned revenue is classified as a(n):
A)asset account.
B)revenue
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