15. A firm failed to make an adjusting entry on December 31, 2008 to recognize revenue earned in 2008 that will be collected in January 2009. What was the effect of this error on the December 31, 2008 financial statements? a. An understatement of assets and revenues, and an overstatement of stockholders' equity

15. A firm failed to make an adjusting entry on December 31, 2008 to recognize revenue earned in 2008 that will be collected in January 2009. What was the effect of this error on the December 31, 2008 financial statements? a. An understatement of assets and revenues, and an overstatement of stockholders' equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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15. A firm failed to make an adjusting entry on December 31, 2008 to recognize
revenue
earned in 2008 that will be collected in January 2009. What was the effect of this
error
on the December 31, 2008 financial statements?
a. An understatement of assets and revenues, and an overstatement of
stockholders' equity
b. An overstatement of liabilities and assets and an understatement of revenues
C. An understatement of assets and an understatement of stockholders' equity
d. An overstatement of liabilities and an understatement of retained earnings
e. None of the above
Page 6 of 8
1083 words
E English (United States)
D, Focus
ENG
9:56 PM
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US
1/19/2021

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