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A law firm received $2280cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service
A law firm received $2280cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause:
expenses to be overstated.
liabilities to be understated.
revenues to be understated.
net income to be overstated.
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