What effect will this adjustment have on the accounting records? $$\begin{array} { | c | c | c | }
\hline \text { Unearned Revenue } & 6,375 & \
\hline \text { Fees Earned } & & 6,375 \
\hline
\end{array}$$
A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) all of these are true

Question

What effect will this adjustment have on the accounting records? $$\begin{array} { | c | c | c | } 
\hline \text { Unearned Revenue } & 6,375 & \
\hline \text { Fees Earned } & & 6,375 \
\hline
\end{array}$$
A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) all of these are true

Quizplus · Accepted Answer

The adjustment increases revenues (Fees Earned), decreases liabilities (Unearned Revenue), and thus increases net income.

What Effect Will This Adjustment Have on the Accounting Records Unearned Revenue 6,375 Fees Earned 6,375\begin{array} { | c | c | c | } \hline \text { Unearned Revenue } & 6,375 & \\\hline \text { Fees Earned } & & 6,375 \\\hline\end{array} Unearned Revenue Fees Earned ​6,375​6,375​​

What Effect Will This Adjustment Have on the Accounting Records $\begin{array} { | c | c | c | } \hline \text { Unearned Revenue } & 6,375 & \\\hline \text { Fees Earned } & & 6,375 \\\hline\end{array}$