question 7 (mandatory) (5 points) what effect will this adjustment have on the accounting records? unearned…

question 7 (mandatory) (5 points) what effect will this adjustment have on the accounting records? unearned revenue 6,375 fees earned 6,375 increase net income increase revenues reported for the period decrease liabilities all of these are true

question 7 (mandatory) (5 points) what effect will this adjustment have on the accounting records? unearned revenue 6,375 fees earned 6,375 increase net income increase revenues reported for the period decrease liabilities all of these are true

Answer

Brief Explanations:

Unearned revenue is a liability. When it is adjusted to fees earned, liabilities decrease as the obligation to provide services related to the unearned revenue is fulfilled. Fees earned is a revenue account, so revenues reported for the period increase. An increase in revenues (assuming no corresponding increase in expenses) will increase net - income.

Answer:

D. all of these are true