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On October 1 of the Current Year,a Company Received $9,600

Question 97

Multiple Choice

On October 1 of the current year,a company received $9,600 for services to be performed evenly over the next six months.If no adjusting entry was made on December 31 of the current year:


A) net income would be understated by $9,600.
B) net income would be understated by $4,800.
C) net income would be overstated by $2,400.
D) net income would be overstated by $4,800.

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