The Entry to Close the Fees Earned Account Would Cause

question 93

Multiple Choice

The entry to close the Fees Earned account would cause:

• A)the Capital account balance to increase.
• B)the Capital account balance to decrease.
• C)the Fees Earned account to decrease.
• D)None of these is correct.

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Expected Profit Rate

The forecasted return on investment, predicting the percentage of profit relative to costs.

Investment

The allocation of resources or capital to create profit in the future.

Treasury Bond

Long-term, interest-bearing securities issued by the U.S. government as a means of borrowing money to fund government spending.