adjusting entries ch 4

number 8

On April 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in Unearned Revenue. If no adjusting entry is made at year end, how will the financial statements be affected? Select one: a. Net income: overstated, Assets: not affected, Liabilities: understated b. Net income: understated, Assets: not affected, Liabilities: overstated ec. Net income: understated, Assets: understated, Liabilities: not affected od. Net income: overstated, Assets: overstated, Liabilities: not affected Check Finish attempt ... E a w