If deferred revenue has been earned by the end of the current period but no adjustment is recorded,net income for the current period will be understated.

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If deferred revenue has been earned, it means that revenue has been recognized but the payment has been deferred to a future period. If no adjustment is recorded, it means that the revenue is not recognized in the current period, which will result in understated net income for the current period.

If Deferred Revenue Has Been Earned by the End of the Current