The time period concept states that

A$)$ companies should record revenue when it has been earned

B$)$ all expenses should be recorded when they are incurred during the period C$)$

financial statements can be prepared for specific periods

D$)$ expenses incurred during a period should be matched against the revenues of the period

Unearned Revenue is classified as a$($n$)$ account.

A$)$ asset

B$)$ equity

C$)$ liability

D$)$ revenue

Revenue that has been earned but not yet collected in cash is called a$($n$)$

A$)$ accrued revenue

B$)$ deferred revenue

C$)$ deferred expense

D$)$ accrued expense

The accountant for Eagle Financial Services, Inc. failed to make an adjusting entry to record $$3,000$ of

telephone expenses for the last two months of the year. Which of the following statements is true?

A$)$ The total liabilities will be overstated.

B$)$ The total liabilities will be understated.

C$)$ The total assets will be understated.

D$)$ The total assets will be overstated.