Question

If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity...

If the accrued revenues adjustment was not made,

Select one:

a. liabilities will be understated, equity overstated, and revenues understated.

b. assets will be understated, equity understated and revenue understated.

c. assets will be overstated, equity overstated, and revenues understated.

d. liabilities will be overstated, equity understated and revenues understated.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The following journal entry is made to record accrued revenues:

General journal Debit Credit
Revenue receivable -------
Revenue ---------

Hence, if accrued revenue are not recorded, it will have the following effect:

- Assets will be understated.

- Revenue will be understated.

- Equity will be understated.

- Liabilities will remain unaffected.

Correct option is b.

Kindly comment if you need further assistance. Thanks‼!

Add a comment
Know the answer?
Add Answer to:
If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • If the prepaid expenses adjustment was not made, Select one: a. liability will be overstated, equity...

    If the prepaid expenses adjustment was not made, Select one: a. liability will be overstated, equity understated and expenses understated. b. assets understated, equity understated and expenses overstated. c. assets overstated, equity overstated, and expenses understated. d. assets understated, equity understated and expenses understated.

  • If an adjustment for accrued income is omitted from the financial reports the effect is: Select...

    If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstated; profit is understated. O b. assets are understated; profit is overstated. O c. assets are overstated; profit is overstated. O d. assets are understated profit is understated

  • Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...

    Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Accrued Revenues Assets Understated Revenues Understated (b) Store supplies of $160 are on hand. The supplies account shows a...

  • If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...

    If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.

  • If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...

    If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.

  • Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment...

    Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1 (2) Accounts Before Adjustment Item (a) Type of Adjustment T Prepaid Expenses A Supplies of $400 are on hand. Supplies account shows $1,600 balance. Assets Overstated T Expenses Understated 4 (b) Services performed but unbilled total $700. Accrued...

  • Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...

    Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Select a type of adjustment                                             ...

  • Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...

    Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Select a type of adjustment                                             ...

  • Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...

    Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Select a type of adjustment                                             ...

  • If an adjustment for depreciation is omitted from the financial reports the effect is: Select one:...

    If an adjustment for depreciation is omitted from the financial reports the effect is: Select one: O a. Assets are understated; profit is understated O b. Assets are overstated; profit is understated O c. Assets are understated; profit is overstated O d. Assets are overstated; profit is overstated

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT