Solution: Failure to record the adjustment to recognize revenue initially recorded as unearned revenue: a) Understates liabilities b) Understates revenue c) Overstates expenses d) Understates assets e) Ove

Problem

Failure to record the adjustment to recognize revenue initially recorded as unearned revenue:

a) Understates liabilities

b) Understates revenue

c) Overstates expenses

d) Understates assets

e) Overstates equity