If the following adjusting entry is omitted, what effect will it have on the financial statements? Unearned Rent 1,900 Rent Revenue 1,900 a. Revenues will be understated by $1,900. b. Revenues will be overstated by $1,900. O c. There will be no effect on liabilities.

If the following adjusting entry is omitted, what effect will it have on the financial statements? Unearned Rent 1,900 Rent Revenue 1,900 a. Revenues will be understated by $1,900. b. Revenues will be overstated by $1,900. O c. There will be no effect on liabilities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If the following adjusting entry is omitted, what effect will it have on the financial statements?
Unearned Rent
1,900
Rent Revenue
1,900
a. Revenues will be understated by $1,900.
b. Revenues will be overstated by $1,900.
O c. There will be no effect on liabilities.
O d. There will be no effect on net income.

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