The failure to adjust an unearned revenue that has been partially earned and was originally recorded as a credit to Unearned Revenue will usually result in an

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Failure to adjust an unearned revenue that has been partially earned and was originally recorded as a credit to Unearned Revenue will result in an understatement of revenues and an overstatement of liabilities. This is because the revenue that has been earned should be recognized as revenue, which increases revenue and decreases liabilities. If it is not adjusted, the revenue will be understated, and the liability will be overstated.

The Failure to Adjust an Unearned Revenue That Has Been