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An entity fails to adjust the Revenue received in advance account for rent that has been...

An entity fails to adjust the Revenue received in advance account for rent that has been earned, what effect will this have on the financial statements?

Select one:

a. Assets will be overstated and revenues will be understated.

b. Liabilities will be understated and revenues will be understated.

c. Liabilities will be overstated and revenues will be understated.

d. Assets will be understated and revenues will be understated.

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