Multiple Choice
A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees. If the company fails to make the end-of-period adjusting entry to move the portion of these fees that has been earned to a revenue account, one effect will be:
A) An understatement of assets.
B) An understatement of equity.
C) An overstatement of assets.
D) An understatement of liabilities.
E) An overstatement of equity.
Correct Answer:
Verified
Correct Answer:
Verified
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