What effect will this adjustment have on the accounting records

Asked by maham237 @ 12/06/2021 in Business viewed by 264 People

Unearned Fees 6,375 Fees Earned 6,375 increase revenues reported for the period increase net income decrease liabilities All of these choices are true.

Answered by maham237 @ 12/06/2021

Answer:

All of these choices are true

Explanation:

Note that the accounting records in the question are merged and they are sorted first in order to answer the question correctly as follows:

Particulars Dr ($) Cr ($)

Unearned Fees 6,375

Fees Earned 6,375

The question is now answered as follows:

Unearned revenue refers to an amount of money that a company or an individual has already received for a goods or services to be delivered or provided in future.

Unearned revenue will not be recognized as income until when the goods or services to be delivered or provided.

Instead, unearned revenue will will be recorded as a liability in the balance sheet of the company as it indicates an amount of debt owed to the customers.

After the goods or services are delivered or provided, the unearned revenue will be transferred to earned revenue account, and this will reduce liabilities, increase revenue, and also increase net profit.

From this question, the adjustment indicates that services for the Unearned Fees have been provided and it is no longer a liability as Unearned Fees has now become Fees Earned. As a result, this will increase revenues reported for the period, increase net income, and decrease liabilities.

Therefore, the correct option is "All of these choices are true".

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2742 persons

What effect will this adjustment have on the accounting records

Similar Questions

Adjusting entries are recorded when cash basis accounting is used

Investments by stockholders have what effect on the accounting equation

A purchase of supplies on account is recorded in the

Goodwill should be recorded in the accounting records only when

Accounting is not concerned only with the recording of transactions

Accrual basis of accounting records revenues when they are

Accounting records of a business enterprise is required by

Discount is not recorded in the books of accounts

Accounting does not record non financial transactions because of

Where were the monthly accounts of the baker recorded

Outstanding expenses are recorded in which basis of accounting

Accounting is an art of recording classifying summarizing analyzing

The accounts that records expenses gains and losses are

Record the adjustment for inventory shrinkage based on physical count

Overcoming fixed mindset: a step-by-step guide to cultivating a growth mindset

Most viewed questions in Business

Foolproof module 9 test answers

Interest rates are expressed as a percentage of

How to enhance knowledge regarding environmental factors through capsim?

Match the job titles with the career clusters.

A company that allows you to license software

Lupe is ready to open a checking account

Mays and mccovey are beer brewing companies

What must be marked on ready to eat bags phfs

Coq six sigma

Henry ford was the first entrepreneur to implement which strategy

Your company was recently served with a lawsuit

Case study starting a business project schedules and curves edgenuity

Which two of the four cs of credit have to do with earning potential and available cash?

The total annual expenditures on advertising in the united states