What Does the Following Journal Entry Indicate? Legal Expense

question 35

Multiple Choice

What does the following journal entry indicate? Legal Expense..................2,900
Cash...............................2,900
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• A)$2,900 cash is due to an attorney.
• B)A sum of $2,900 was received from attorney in advance.
• C)$2,900 cash is due from an attorney.
• D)An attorney was paid $2,900 in cash.

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Definitions:

Certificate of Authority

An official document issued by regulatory authorities granting permission for a company to do business in a particular jurisdiction.

Foreign Company

A foreign company is a business entity that is incorporated in a country other than where it conducts its majority operations or where its principal investors reside.

LLC

stands for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Joint Venture

A business arrangement in which two or more parties agree to pool resources for the purpose of accomplishing a specific task.