Born of Frustration, Corp. provides services to its customers on account. Accrued revenue at the end...
Born of Frustration, Corp. provides services to its customers on account. Accrued revenue at the end of the annual accounting period totaled $6,250, but the firm forgot to make an adjusting entry for accrued revenue at the end of the accounting period. Which of the following is true about the period end financial statements?
| a. |
None of the answers given are correct. |
|
| b. |
Liabilities will be overstated and Stockholders’ Equity will be understated. |
|
| c. |
Liabilities will be understated and Stockholders’ Equity will be overstated. |
|
| d. |
Assets and Stockholders’ Equity will be overstated. |
|
| e. |
Assets and Stockholders’ Equity will be understated. |
Homework Answers
Service providers on account will increase assets balance with accounts receivable and equity balance with service revenue.
Failure to record will understate assets and stockholders equity.
Assets and Stockholders’ Equity will be understated.
Option e.
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Born of Frustration, Corp. provides services to its customers on
account. Accrued revenue at the end...
1- Under IFRS, which of the following is generally not a guideline for recognizing revenue? The...
1- Under IFRS, which of the following is generally
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The transaction price is determinable.
When (or as) the company satisfies the performance
obligation.
The contract is identified with the client.
Collection is reasonably assured.
2- If Bee Corp. fails to adjust the Unearned Rent account for
rent that has been earned, what effect will this have on that
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Liabilities will be understated and revenues will be
understated.
Assets will be understated...
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1- Under IFRS, which of the following is generally
not a guideline for recognizing revenue?
The transaction price is determinable.
When (or as) the company satisfies the performance
obligation.
The contract is identified with the client.
Collection is reasonably assured.
2- If Bee Corp. fails to adjust the Unearned Rent account for
rent that has been earned, what effect will this have on that
month’s financial statements?
Liabilities will be understated and revenues will be
understated.
Assets will be understated...
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