A legal firm received $2,000 cash for legal services to be rendered in the future.The full amount was credited to Deferred Revenue.If the legal services have been provided at the end of the accounting period and no adjusting entry has previously been made, this would cause
A) expenses to be overstated.
B) net income to be overstated.
C) liabilities to be understated.
D) revenues to be understated.
Correct Answer:
Verified
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