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Deferred Revenue: The overall financial statement effect of recording the adjusting journal entry is an__________

User Minyi Han
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Final answer:

The overall financial statement effect of recording the adjusting journal entry for deferred revenue is a decrease in liabilities and an increase in revenue.

Step-by-step explanation:

The overall financial statement effect of recording the adjusting journal entry for deferred revenue is a decrease in liabilities and an increase in revenue. When a company receives payment for goods or services that have not yet been provided, it records the payment as deferred revenue. To recognize the revenue, an adjusting entry is made to decrease the deferred revenue account and increase the revenue account.

User Jasmeen
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