The Following Adjusting Journal Entry Does Not Include an Explanation

question 120

Multiple Choice

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | c | c | } \hline \text { Unearned Revenue } & 7,500 & \\\hline \text { Fees Earned } & & 7,500 \\\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \\\hline\end{array}$$

• A) Record payment of fees earned.
• B) Record fees earned at the end of the month.
• C) Record fees that have not been earned at the end of the month.
• D) Record payment of fees to be earned.

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Definitions:

Canada Health Act

The federal legislation that sets out the conditions by which individual provinces and territories in Canada must comply to receive federal funds for health services.

Portability

The health care insurance plan of a province or territory can set only a limited waiting period for eligibility and must pay the cost of insured health services provided while temporarily absent from the province or territory but within Canada.

Health Coverage

A type of insurance that covers the whole or a part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons.

Healthy Lunch Initiative

Programs or efforts aimed at improving the nutritional quality of school lunch programs to enhance student health.