Final answer:
The failure to adjust the unearned rent revenue account for recognized rent will have negative impacts on the company's financial statements.
Step-by-step explanation:
If a company fails to adjust the unearned rent revenue account for rent that has been recognized, it will have a negative impact on that month's financial statements. Specifically, the failure to adjust the unearned rent revenue account means that revenue that has already been received but not yet earned will not be properly reflected on the income statement.
As a result, the company's revenue will be understated, and its net income will be lower than it should be. Additionally, the failure to adjust the unearned rent revenue account will lead to an overstatement of the company's liabilities on the balance sheet.