kboard b X what is stockholders equ x | M Inbox (1,662)-galomikeyc Learn × group portr ard.com/webapps/ubsh-Iti-integration-BBLEARN//app/content/launchHandler?course id- 132178 18content pus Powered by Bb eCampusS ePortfolios Community Content Collection ments HW Assignment 3 Menu QUESTION 7 Not changed since last attempt Marked out of 1.00 Flag question On October 1, a company received $3,600 for services to be performed over the next 6 months, with an equal amount of work to be completed each month. If no adjusting entry is made on December 31, Select one: O a. net income will be understated by $3,600 O b. net income will be understated by $1,800 O C. net income will be overstated by $1,800 O d. net income will be overstated by $3,600 O e. net income will be understated by $2,400 Save Answers Previous page Next page [D
kboard b X what is stockholders equ x | M Inbox (1,662)-galomikeyc Learn × group portr ard.com/webapps/ubsh-Iti-integration-BBLEARN//app/content/launchHandler?course id- 132178 18content pus Powered by Bb eCampusS ePortfolios Community Content Collection ments HW Assignment 3 Menu QUESTION 7 Not changed since last attempt Marked out of 1.00 Flag question On October 1, a company received $3,600 for services to be performed over the next 6 months, with an equal amount of work to be completed each month. If no adjusting entry is made on December 31, Select one: O a. net income will be understated by $3,600 O b. net income will be understated by $1,800 O C. net income will be overstated by $1,800 O d. net income will be overstated by $3,600 O e. net income will be understated by $2,400 Save Answers Previous page Next page [D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Unearned revenue is the revenue already collected but not yet earned. In the accrual concept of accounting, unearned revenue is considered as liabilities. If adjusting entries are not made for unearned revenue at the end of accounting period. Due to this, revenues will be understated, expenses have no effect, net income will be understated, asset have no effect, liabilities will be overstated and stockholder’s equity will be understated.
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