Asked by Shayan Patel on Apr 27, 2024
Verified
Which of the following describes the classification and normal balance of the fees earned account?
A) asset, credit
B) liability, credit
C) stockholders' equity, debit
D) revenue, credit
Revenue
The total income generated by a company from its business activities, including sales of goods or services before any expenses are deducted.
Asset
An economic resource owned or controlled by an individual or company, expected to provide future benefits.
Liability
A financial obligation or debt owed by a business to an external entity that must be repaid.
- Determine and categorize accounts based on their typical balances (debit or credit) while comprehending the notion of normal balance across various account types.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
D
Explanation :
Fees earned is a revenue account, indicating the income earned from providing goods or services to customers. Revenue accounts have a normal credit balance, since they increase equity through an increase in income.
Learning Objectives
- Determine and categorize accounts based on their typical balances (debit or credit) while comprehending the notion of normal balance across various account types.