If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause:

A. An understatement of liabilities.
B. An overstatement of net income.
C. An overstatement of equity.
D. An overstatement of assets.
E. An overstatement of liabilities.


Answer: E

Business

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