A company has unearned revenues on its books. If the company fails to record a year-end adjusting entry for unearned revenues, then its financial statements
A) understate retained earnings and overstate revenues.
B) understate net income and overstate retained earnings.
C) understate revenues and understate liabilities.
D) overstate assets and overstate revenues.
E) understate revenues and overstate liabilities.
Ans: E) understate revenues and overstate liabilities.
You might also like to view...
Panel data's advantages over survey data include all of the following EXCEPT:
A) changes in brand loyalty can be measured. B) more committed respondents give more accurate information. C) recall errors are eliminated when panelists record information at the time of purchase. D) human errors are eliminated if electronic devices are used. E) minorities and low-education groups are most always represented in sufficient numbers among purchase panel respondents.
According to the text, one of the biggest challenges in online research is the ability to ________
A) generate quality responses B) generate a truly random sample C) generate sufficient responses D) generate a convenience sample E) generate analysis of variance