If Throughout an Accounting Period the Fees for Legal Services

question 52

Multiple Choice

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

• A) Debit Cash and credit Legal Fees Earned.
• B) Debit Cash and credit Unearned Legal Fees.
• C) Debit Unearned Legal Fees and credit Legal Fees Earned.
• D) Debit Legal Fees Earned and credit Unearned Legal Fees.
• E) Debit Unearned Legal Fees and credit Accounts Receivable.

Understand the impact of negative nominal interest rates on savers and the economy.

Comprehend the concept of pure or economic profit and its determination.

Analyze the role of economic profit in resource allocation and usage.

Understand the distinction between normal profit and its significance in business.

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