What effect will this adjustment have on the accounting records? $6,375\begin{array} { | c | r | r | } \hline \text { Unearned Fees } & 6,375 & \\\hline \text { Fees Earned } & & 6,375 \\\hline\end{array}$

A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) All of these choices

Question

What effect will this adjustment have on the accounting records?

6,375\begin{array} { | c | r | r | } \hline \text { Unearned Fees } & 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 choices

Everett Chambler · Accepted Answer

Final Answer : D, Explanation :  This adjustment moves the amount from Unearned Fees (a liability account) to Fees Earned (a revenue account), which increases revenues for the period, decreases liabilities, and as a result, increases net income.

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