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zaharov [31]
3 years ago
7

A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a

ccount Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause:
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

Revenues to be understated.

Explanation:

The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.

In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.

When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and  the amount is less than the true amount.

The adjusting entry that should be done is:

Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.

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Answer: Objective criteria. The correct answer is C.

Explanation:

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Objective criteria is when real and factual information is used at work, with police, or even during a loan process. This is most often used when a third party is involved in the negotiation process. The third party will know the relevant information related to negotiation and will be able to give clear and precise information to all parties involved.

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b. Identity theft

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3 years ago
Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of m
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4 0
2 years ago
If a monopolist increases sales from 100 to 101 units of output by lowering its price from $4.00 to $3.99, its marginal revenue
Goshia [24]

Answer:

Marginal revenue is $2.99

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8 0
2 years ago
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Answer:

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