A company records cash received from clients in advance for legal services in Unearned Revenue. If the company fails to make the end-of-period adjusting entry to move the portion of revenue that has been earned to a revenue account, one effect will be.... ?

A company records cash received from clients in advance for legal services in Unearned Revenue. If the company fails to make the end-of-period adjusting entry to move the portion of revenue that has been earned to a revenue account, one effect will be.... ?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 3MC: If a journal entry includes a debit or credit to the Cash account, it is most likely which of the...

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Question

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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