A Publishing Company Records the Subscriptions Paid in Advance by Its

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:

A) An overstatement of equity
B) An overstatement of liabilities
C) An understatement of assets
D) An understatement of liabilities
E) An overstatement of assets