nent CALCULATOR FULL SCREEN PRINTER VERSION BACK NE Practice Question 44 X Failure to make an adjusting entry will result in an overstatement of revenues and an understatement of liabilities. If cash received for future services is initially recorded in revenue accounts and the company has not yet performed all of the required services at the end of the accounting period, then failure to make an adjusting entry will cause accounts receivable to be overstated. . liabilities to be overstated. revenues to be overstated. revenues to be understated. Click if you would like to show Work for this question: Open Show. Work Question Attempts: 1 of 2 used