If Fees Earned has been credited, it is most likely that
A) services were provided.
B) the owner made an investment.
C) a correcting entry for the overstatement of revenue was recorded.
D) All of these are possible.

Question

Quizplus · Accepted Answer

Fees Earned is a revenue account that represents the amount earned from providing services to customers. Therefore, if Fees Earned has been credited, it is most likely that services were provided. Option B is incorrect because an investment would result in a cash or asset account being debited, not Fees Earned. Option C is incorrect because a correcting entry for the overstatement of revenue would result in a debit to Fees Earned, not a credit.

If Fees Earned Has Been Credited, It Is Most Likely