Which of the Following Describes the Classification and Normal Balance

question 6

Multiple Choice

Which of the following describes the classification and normal balance of the fees earned account?

• A) asset, credit
• B) liability, credit
• C) stockholders' equity, debit
• D) revenue, credit

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Definitions:

Misstatement

An error or inaccuracy in financial records or statements, often resulting due to oversight or misunderstanding.

Cash Management

The process of collecting, managing, and investing a company's cash in a way that optimizes its liquidity, investment return, and risk levels.

Receivables

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Expenditures

The flow of cash or cash-equivalent amounts paid out by a company to meet obligations or purchase goods and services.