adjusting entries ch 4

q 7

tion 7 On April 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in Revenue. If no adjusting entry is made at year end, how will the financial statements be affected? aining: 2 s out of Select one: a. Net income: understated, Assets: understated, Liabilities: not affected tion b. Net income: understated, Assets: not affected, Liabilities: overstated c. Net income: overstated, Assets: overstated, Liabilities: not affected d. Net income: overstated, Assets: not affected, Liabilities: understated Check