The Following Adjusting Journal Entry Does Not Include an Explanation

question 130

Multiple Choice

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

• A) Record payment of fees earned
• B) Record fees earned at the end of the month
• C) Record fees that have not been earned at the end of the month
• D) Record payment of fees to be earned.

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Definitions:

Merchandising Business

A type of business that purchases goods and sells them at a higher price without changing their form.

Merchandising Income Statement

A financial statement that shows the gross profit, operating expenses, and net income of a company that buys and sells goods.

Administrative Expenses

Administrative Expenses are costs related to the general operation of a business, including expenses such as office supplies, salaries of administrative personnel, and rent.

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.