Question

At the end of the current year, $17,555 of fees have been earned but have not been billed to clients. What is the total amount of fees earned and billed to clients at the end of the year?

1) $17,555
2) Cannot be determined
3) Less than $17,555
4) More than $17,555

Answer 1

The total amount of fees earned and billed at the end of the year cannot be determined based on the given information.

Step-by-step explanation:

In accounting, the term 'earned' refers to revenue that has been recognized or earned by providing goods or services, regardless of whether it has been billed or collected from clients.

So, in this case, the fees of $17,555 have been earned by the company but haven't been billed to clients yet. Therefore, the total amount of fees earned and billed at the end of the year would be the sum of the $17,555 earned but not billed, and any fees that have already been billed to clients.

Since the question doesn't provide information about the fees that have already been billed, we cannot determine the exact total amount. The correct answer is 2) Cannot be determined.