The General Journal Entry to Record the Earning of Revenue

question 27

Multiple Choice

The general journal entry to record the earning of revenue would most commonly include:

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

Grasp the components of national income, particularly wages, salaries, and fringes.

Calculate and interpret per capita GDP and its changes over time.

Distinguish between nominal GDP and real GDP and the impact of inflation on both.

Recognize the importance of final goods in GDP calculation to avoid multiple counting.

---

Definitions:

Required Return

The lowest percentage of return per annum that draws in companies or individuals to invest in a particular security or project.

IRR

Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.

Project

A temporary endeavor undertaken to create a unique product, service, or result.

Payback Criterion

A capital budgeting method that measures the time required to recoup the initial investment in a project.