An architecture firm earned $1960 for architecture services provided with the fee to be paid in the future. No entry was made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:

Revenue to be understated

If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause revenue to be understated.

Explanation:

Businesses may be tempted to understate their COGS in order to make their business model look more attractive and their profit more sustainable, making them better candidates for loans. A lower COGS makes the financial statements more attractive – at least until it comes time to pay taxes on the earnings

Fraud in financial statements takes the form of overstated assets or revenue or understated liabilities and expenses. Overstating assets and revenues falsely reflect a financially stronger company by the inclusion of fictitious asset costs or artificial revenues.

By not  recording the $1,960 in the books of account, revenue for the period would be understated by $1,960

Explanation:

The accrual concept of accounting requires that revenue should be recognized when it has been earned and expense recorded when it has been incurred.

Earning revenue implies that the goods have been delivered or that the necessary services have been rendered.This means that recording revenue has not nothing to do with cash receipt as receiving cash only relate to cash flow position.

The omission of the $1,960 from the books on the basis that cash has not been received means that revenue is understated as well as the profit for the period under consideration.

in this scenario it would be the consumer demand as most influential in making the decision. the band members need to figure out where and from whom they will make the most money, in other words who out of the two consumer groups - football fans or car drivers - will spend their money, who is more likely to contribute to their cause and buy what they are offering.

levels of production can be increased by technology while holding labor and capital constant, because increased technology makes the production process more efficient. subsequently, the lras curve is almost a vertical line, that can shift to the right, with an increase in technology.

the relationship between the lras curve and the ppc is that both can make the economy could grow. the ppc achieves that when it shifts outward because of more resources or technological advances while the lras curve shifts if more resources are developed or if there are technological advances.

the lras curve is a vertical line at an output level that represents the number of goods and services a nation can produce over a sustained period using all of its productive resources as efficiently as possible with all of the current technology available to it.

the production possibilities frontier (ppf) is a graphical device that is used for economic analysis of production decisions because the ppf measures the maximum possible combinations of two goods that an economy is capable of producing with its currently available resources and technology.