Describe the Transaction Shown in the Following Journal Entry

question 85

Multiple Choice

Describe the transaction shown in the following journal entry.

• A)Paid cash to a customer who requested a refund.
• B)Received cash in advance for work to be performed in future months.
• C)Recorded adjusting entry for work completed.
• D)Received cash for services completeD.The debit to cash and credit to unearned revenue would increase both of these accounts. That would be the correct journal entry to record receiving cash in advance for work to be performed in the future.

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Definitions:

Investment Policy

Investment Policy outlines a strategy, guidelines, and constraints for managing an investment portfolio.

Mutual Fund

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission to investors.

Expense Ratio

Expense Ratio is the annual fee that mutual funds, exchange-traded funds (ETFs), and other pooled investment products charge their shareholders, expressed as a percentage of assets under management.