30 minutes remaining assessments content page 17 of 22 0.5 points question 16 failure to prepare an…

30 minutes remaining assessments content page 17 of 22 0.5 points question 16 failure to prepare an adjustment at the end of a period to record an accrued revenue would cause a an understatement of revenues and an understatement of liabilities. b an understatement of assets and an understatement of revenues. c net income to be overstated. d an understatement of revenues and an overstatement of liabilities.

30 minutes remaining assessments content page 17 of 22 0.5 points question 16 failure to prepare an adjustment at the end of a period to record an accrued revenue would cause a an understatement of revenues and an understatement of liabilities. b an understatement of assets and an understatement of revenues. c net income to be overstated. d an understatement of revenues and an overstatement of liabilities.

Answer

Brief Explanations:

Accrued revenue is revenue that has been earned but not yet received. When an adjustment for accrued revenue is not made, revenues are under - stated because the earned revenue is not recorded. Also, since accrued revenue is often associated with an asset (such as accounts receivable), assets are under - stated.

Answer:

B. an understatement of assets and an understatement of revenues.