Multiple Choice
Throughout an accounting period, the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Service Revenue. If the accountant fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned, one effect will be
A) an overstatement of equity
B) an understatement of equity
C) an understatement of assets
D) an understatement of liabilities
E) an overstatement of profit
Correct Answer:
Verified
Correct Answer:
Verified
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