Asked by Brooke Candia on May 01, 2024
Verified
If Fees Earned has been credited, it is most likely that:
A) services were provided.
B) the owner made an investment.
C) a correcting entry for the overstatement of revenue was recorded.
D) a customer paid in advance.
Fees Earned
Income earned from providing services, recorded as revenue in the income statement.
Correcting Entry
An entry made in accounting records to correct a previous error or adjust for discrepancies.
- Determine accurate journal entries for various transaction categories, such as investments, withdrawals, and purchases.
Verified Answer
DD
Diane DeboltMay 08, 2024
Final Answer :
A
Explanation :
When "Fees Earned" is credited, it typically indicates that services have been provided, generating revenue for the business. This is because in accounting, revenues are increased by credits.
Learning Objectives
- Determine accurate journal entries for various transaction categories, such as investments, withdrawals, and purchases.