The accountant of Reliable Consulting Company failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year.Assume the company initially recorded a liability.Which of the following statements is TRUE?
A) The total liabilities will be overstated.
B) The total liabilities will be understated.
C) The total assets will be overstated.
D) The total assets will be understated.
Correct Answer:
Verified
Q159: On January 1,2017,the Accounts Receivable of Martha
Q160: Athens Delivery Service is hired on October
Q161: If net income is overstated,equity will be
Q162: The purpose of the adjusted trial balance
Q163: If a company fails to make an
Q165: Adjusting entries do not update balance sheet
Q166: All of the accounts and the account
Q167: Adjusting entries are completed to ensure that
Q168: If a company fails to make an
Q169: The accountant for Eagle Financial Services Company
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents