1) At the end of the accounting period, the Lisa Yike, LLC's Legal Fees Earned account has a normal balance of $150,000. The accountant makes two adjustments--one to accrue unbilled legal fees earned of $5,000, and the other to reduce the Unearned Legal Fees liability account by $1,000.

After the adjustments are posted, the Legal Fees Earned account has a balance of:

Select one:

A. $165,000

B. $163,000

C. $156,000

D. $155,000

2) The unique characteristic of an accrual adjustment is that the adjusting entry:

Select one:

A. Increases a balance sheet account and decreases an income statement account

B. Increases both a balance sheet account and an income statement account

C. Decreases both a balance sheet account and an income statement account

D. Decreases a balance sheet account and increases an income statement account

pur-new-sol

Related Questions