On September 1, Zuhoor Muscat Company received RO4,800 in advance from a customer for services to be provided equally over 6 months period starting September. If Zuhoor Muscat Company did not prepare an adjusting entry on December 31 for the above transaction, then: a. Liabilities will be overstated by RO 4,800. Ob Revenues will be understated by RO 3,200. Oc None of the options are correct. Od. Cash will be understated by RO 4,800. O e. Net Income will be understated by RO 4,800.
On September 1, Zuhoor Muscat Company received RO4,800 in advance from a customer for services to be provided equally over 6 months period starting September. If Zuhoor Muscat Company did not prepare an adjusting entry on December 31 for the above transaction, then: a. Liabilities will be overstated by RO 4,800. Ob Revenues will be understated by RO 3,200. Oc None of the options are correct. Od. Cash will be understated by RO 4,800. O e. Net Income will be understated by RO 4,800.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On September 1, Zuhoor Muscat Company received RO 4,800 in advance from a customer for services
to be provided equally over 6 months period starting September. If Zuhoor Muscat Company did not
prepare an adjusting entry on December 31 for the above transaction, then:
Oa.
Liabilities will be overstated by RO 4,800.
O b. Revenues will be understated by RO 3,200.
O. None of the options are correct.
O d. Cash will be understated by RO 4,800.
O e. Net Income will be understated by RO 4,800.
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