A dance studio received $$3,500$ cash for services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the services have been rendered by the end of the accounting period and no adjusting entry is made, this would cause

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profit to be overstated.

expenses to be overstated. $$

liabilities to be understated. $$

revenues to be understated. $$

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