The Journal Entry to Record an Shift of Assets Would

question 41

Multiple Choice

The journal entry to record an shift of assets would include:

• A)a debit to Cash and a credit to Fees Earned.
• B)a debit to Supplies and a credit to Accounts Payable.
• C)a debit to Cash and a credit to Accounts Receivable.
• D)a debit to Fees Earned and a credit to Accounts Receivable.

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Definitions:

Savings

The portion of income that is not spent on current expenditures and instead set aside for future use.

Disposable Income

The disposable capital for households' spending and saving endeavors after income taxes.

Consumption

The process of purchasing goods and services to fulfill the needs and wants of individuals.

Average Propensity

The ratio of total consumption to total income, indicating how much income is spent rather than saved.