MS LEARNING MANAGEMENT SYSTEM LAYSIA SABAH ourses Fakulti Perniagaan, Ekonomi da

Question

MS LEARNING MANAGEMENT SYSTEM LAYSIA SABAH ourses Fakulti Perniagaan, Ekonomi dan Perakaunan BT12203 |2-2017/2018] i MID-TERM EXAM BT1203 2 Question 42 Not yet answered Marked out of 1.00 29. C4.A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees. If the company fails to make the end-of-period adjusting entry to record the portion of these fees that has 9 10 Flag quesionbeen earned, one effect will be: 14 15 19 20 24 25 Select one: a. An understatement of equity. 6 Ob. An overstatement of equity. c. An understatement of assets. O d. An overstatement of assets. O e. An understatement of liabilities. 29 30 34 35 39 40 44 45 49 50 3 54 55 8 59 60 Next F8 F11 F12 9

Explanation / Answer

29)correct option is "A"

Since the adjusting entry is not made ,legal revenue earned during the period is not recorded therefore net income is understated as a result equity is understated (as net income is closed in equity)

39)correct option is "B"

According to matching concept ,expense should be recognised in the period revenuein relation to such expense is earned . therefore as soon as credit sales is made ,extimated uncollectible account should be made.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.