Ask Question
BusinessBusiness
6 May, 09:21

The accountant of Omega Consulting failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability. Which of the following statements is true?

A. The total liabilities will be overstated.

B. The total assets will be overstated.

C. The total assets will be understated.

D. The total liabilities will be understated.

+1
Answers (1)
  1. 6 May, 12:53
    0
    Answer: Option (A). The total liabilities will be overstated.

    Explanation: Total liabilities are the aggregate debt and financial obligations owed by a business to individuals and organizations at any specific period of time. Total liabilities are reported on a company's balance sheet and are a component of the general accounting equation. In this scenario, Assuming the company initially recorded a liability, then the total liabilities will be overstated.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The accountant of Omega Consulting failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
List six reasons why people may lose their jobs
Answers (1)
A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note payable. The note payable has no stated interest rate.
Answers (1)
Scenario 1 Aiden's car is 12 years old and he's worried it might break down, so he's trying to save three months of expenses for unexpected repairs, while also saving for a new car.
Answers (1)
Which of these statements regarding organizational buyers is most accurate? a. wholesalers and retailers resell the goods they buy without reprocessing them?
Answers (1)
3) How might you need to work differently to cultivate the organizational support within the different business units that is necessary to ensure the success of your multicultural leadership effort?
Answers (1)
New Questions in Business
Gault Corporation had the following shares of stock outstanding on December 31, 2018: Common stock, $50 par value, 200,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 20,000 shares outstanding Dividends were in arrears
Answers (1)
An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on check - ing accounts.
Answers (1)
What effect does the availability of many substitutes have on the elasticity of demand for a good?
Answers (1)
What strategies do companies use for their financial benefit
Answers (1)
1. On March 1, a business paid $3,600 for a twelve month liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000.
Answers (1)
Home » Business » The accountant of Omega Consulting failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability.
Sign Up Forgot Password?