Fees Earned (But Not Yet Received in Cash)by a Business

question 66

Multiple Choice

Fees earned (but not yet received in cash) by a business in exchange for services that it has provided appear on which of the following statements?

• A)Balance sheet
• B)Statement of Cash Received
• C)Statement of retained earnings
• D)Statement of cash flows
• E)Schedule of Accounts Receivable

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Definitions:

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to present as if the group of companies was a single economic entity.

Amortization

The gradual reduction of a debt or the cost of an intangible asset over a specified period of time.

Acquisition

The method where one corporation acquires the majority or entirety of another corporation's shares to obtain dominance over that corporation.