Asked by
Kirill Dunayev
on Nov 15, 2024
Verified
Failure to prepare an adjusting entry at the end of a period to record accrued revenue would cause
A) net income to be overstated.
B) an understatement of assets and an understatement of revenues.
C) an understatement of revenues and an understatement of liabilities.
D) an understatement of revenues and an overstatement of liabilities.
Accrued Revenue
Income that has been earned but not yet received, recorded in the accounting period it is earned rather than when payment is received.
Assets
Resources owned or controlled by a business, expected to generate future economic benefit.
- Understand the implications of not making required adjustment entries.
- Identify the distinctions among diverse forms of income and the processes for their acknowledgment.
Verified Answer
JE
Learning Objectives
- Understand the implications of not making required adjustment entries.
- Identify the distinctions among diverse forms of income and the processes for their acknowledgment.