MC Qu. 81 A publishing company records the...
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 overstatement of equity. |
| → | An overstatement of liabilities. |
| An understatement of assets. | |
| An understatement of liabilities. | |
| An overstatement of assets. |
