Assume the cash was received in the last accounting period. If the adjusting entry to record revenue earned during the current period is not recorded:

Name: Assume the cash was received in the last accounting period. If the adjusting entry to record revenue earned during the current period is not recorded:
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Question

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If the adjusting entry to record revenue earned is not made, the liability (unearned revenue) will remain on the books, overstating liabilities since the revenue has actually been earned.

Assume the Cash Was Received in the Last Accounting Period