Multiple Choice
A publishing company records the subscriptions paid in advance by its customers in an account called Unearned Subscription Revenue.If the company fails to make the end-of-period adjusting entry to record the portion of the subscriptions that have been earned,one effect will be an:
A) Overstatement of equity.
B) Overstatement of liabilities.
C) Understatement of assets.
D) Understatement of liabilities.
E) Overstatement of assets.
Correct Answer:
Verified
Correct Answer:
Verified
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