For adjusting entries relating to accrued revenues,
A. a liability-revenue account relationship exists.
B. the adjusting entry involves a credit to an asset account and a debit to a revenue account.
C. if an adjustment is not made, assets will be overstated.
D. before adjustment, both assets and revenues are understated.
Answer:D
For adjusting entries relating to accrued revenues,
A. a liability-revenue account relationship exists. B. the adjusting entry involves a credit to an asset account and a debit to a revenue account. C. if an adjustment is not made, assets will be overstated. D. before adjustment, both assets and revenues are understated.