On December 31, 2014, the Balance in Pinnacle Exploration Company's

question 78

Multiple Choice

On December 31, 2014, the balance in Pinnacle Exploration Company's Unearned Revenue account was a credit of $8,000. In January, 2015, the company received an advance payment of $14,000 from a new customer for services to be performed. By January 31, adjustments had been made to recognize $7,000 of the revenue which had been earned during January. What was the balance in Unearned Revenue on January 31, 2015?

• A)$7,000 credit
• B)$14,000 debit
• C)$8,000 credit
• D)$15,000 credit

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Definitions:

Foreign Exchanges

The global market in which currencies are traded. This market determines the foreign exchange rates for every currency.

Financial Statements

Comprehensive reports on a company's financial performance, position, and cash flows over a specific period.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company and possibly entitlements to dividends and voting rights.

Litigation

The process of taking a legal action or lawsuit; the series of activities involved in pursuing or defending a legal case in court.