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