The accountant of reliable​ consulting, inc. failed to make an adjusting entry to record​ $6,000 for unearned service revenues that were earned before the end of the fiscal year. assume the company initially recorded a liability. which of the following statements is​ true? a. the total assets will be overstated. b.the total liabilities will be understated. c.the total liabilities will be overstated. d.the total assets will be understated.

C.The total liabilities will be overstated.

Explanation:

As for the provided information, the unearned revenue is not reversed even when the revenue stands earned.

Also, as per the normal practices of accounting unearned revenue is recorded as a liability as because on the date when it is recorded as unearned goods or services are still not provided to the customer.

Now, when the liability is recorded and the liability is not reversed at the time when payment is made then this will overstate the balance of liabilities.

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