If the adjusting entry is not made for unearned revenues, the result will be: A. Overstate assets and understate liabilities B. Overstate liabilities and understate revenue C. Understate net income and overstate owner’s equity D. Understate owner’s equity and overstate revenue

If the adjusting entry is not made for unearned revenues, the result will be: A. Overstate assets and understate liabilities B. Overstate liabilities and understate revenue C. Understate net income and overstate owner’s equity D. Understate owner’s equity and overstate revenue

Name: If the adjusting entry is not made for unearned revenues, the result w
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: If the adjusting entry is not made for unearned revenues, the result will be: A. Overstate assets and understate liabilitiesB. Overstate liabilities and understate revenueC. Understate net income and overstate owner’s equityD. Understate owner’s equi

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 12Q: If adjusting entries include these listed accounts, what other account must be in that entry as...

See similar textbooks

Similar questions

Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense.
Which of the following accounts balance would be a different number on the Balance Sheet than it is on the adjusted trial balance? A. accumulated depreciation B. unearned service revenue C. retained earnings D. dividends
If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.
Revenue earned but not yet collected is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unearned revenue)
The Effect of Adjusting Entries on the Accounting Equation Determine whether recording each of the following adjusting entries will increase (I), decrease (D), or have no effect (NE) on each of the three elements of the accounting equation.
Which of these transactions requires an adjusting entry (debit) to Unearned Revenue? A. revenue earned but not yet collected B. revenue collected but not yet earned C. revenue earned before being collected, when it is later collected D. revenue collected before being earned, when it is later earned
Identify which type of adjustment is associated with this account, and what is the other account in the adjustment? Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. accounts receivable B. interest payable C. prepaid insurance D. unearned rent
Which of the following statements is false? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. The cash account will always be affected by adjusting journal entries. Adjusting entries can be classified as either accruals or deferrals.
Which of the following statements is incorrect? A. Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded. C. Adjusting entries can be used to record both accrued expenses and accrued revenues. D. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
Which of the following statements is incorrect? A. Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded. C. Adjusting entries can be used to record both accrued expenses and accrued revenues. D. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time. E.Adj usting entries affect only balance sheet accounts.
Failure to prepare an adjusting entry at the end of the period to record an accured expense would casue: (Choose all of the correct ones) A. An understatement of libailities B. An overstatement of revenue C. An understatement of expenses D. An overstatement of net income E. An overstatement of assets
If an expense has been incurred but not yet recorded, the adjusting entry would involve: a. A liability and an asset b. liability and a revenue c. An expense and an asset d. An asset and a revenue Which statement is not true about accrual and deferral? a. An accrued expense is an amount not paid and currently matched with earnings.b. A prepaid expense is an amount paid and not currently matched with earnings.c. An accrued income is an amount not collected and currently matched with expenses.d. A deferred income is an amount collected and currently matched with expenses. An entity is a resort located in Palawan. The entity collects cash when guests make a reservation. During December 2020, the entity collected P600,000 of cash and recorded the receipt by recognizing unearned revenue. The entity had earned one-third of this amount and the other two-thirds will be earned during January 2021. What is the impact of the adjusting entry on December 31, 2020? a. 400,000 increase in equity…