Accrued Fees Earned but Not Recorded at August 31 Are

question 142

Multiple Choice

Accrued fees earned but not recorded at August 31 are $25,750. Which of the following is correct for the reversing entry on September 1?

• A) credit Unearned Fees for $25,750
• B) debit Accounts Receivable for $25,750
• C) debit Fees Earned for $25,750
• D) credit Fees Earned for $25,750

---

Definitions:

Strike Prices

The predetermined prices at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Exercise Price

The Exercise Price, also known as the strike price, is the price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.

Risk-Free Rate

The hypothetical rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.

Variance

Variance is a statistical measure used to determine the dispersion of data points in a data set relative to its mean, indicating how much the data points differ from the average.