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Complan Harness Shop Received $2,000 Cash for Harness Services to Be

Question 94

Multiple Choice

Complan Harness Shop received $2,000 cash for harness services to be provided in the future. The full amount was credited to the liability account Unearned Harness Fees. If the Harness 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) profit to be overstated.
C) liabilities to be understated.
D) revenues to be understated.

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