During the Last Month of Its Fiscal Year, Echo Lake

question 140

Multiple Choice

During the last month of its fiscal year, Echo Lake Resort accepted numerous deposits from customers. By the end of the month many, but not all, of these guests had completed their stays. The entry to record this event is an example of an adjusting entry:

• A) To apportion a recorded cost.
• B) To apportion unearned revenue.
• C) To record unrecorded expenses.
• D) To record unearned revenue.

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Definitions:

Labor Productivity

A measure of economic performance that examines the amount of goods and services produced by one hour of labor.

Unionized Labor Force

A workforce that is represented by one or more unions, which negotiate wages, working conditions, and other employment terms on behalf of their members.

Entrepreneur

An individual who initiates and operates a new business venture, taking on financial risks in the hope of profit.

Government Effectiveness

A measure of the quality of public services, the civil service and its independence from political pressures, the quality of policy formulation, and the credibility of the government's commitment to its policies.