Paramount Event Planning Services Collects Fees from Its Customers in Advance.On

question 35

Multiple Choice

Paramount Event Planning Services collects fees from its customers in advance.On January 1,2015,the balance of its Unearned Revenue account had a balance of $6,000 (Cr.) .During January and February,the company collected $3,000 and $1,000 as advance fees.During the two-month period,it rendered services of $6,500 related to the prepaid revenue.What is the balance in Unearned Revenue at the end of February?

• A)debit balance of $6,000
• B)credit balance of $6,000
• C)debit balance of $3,500
• D)credit balance of $3,500

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Definitions:

Expected Market Rate

The anticipated return that investors predict they will receive from an investment in the financial markets.

Systematic Risk

The risk associated with market fluctuations that cannot be mitigated through diversification, affecting all investments across the board.

Relevant Risk

The portion of an investment's risk that cannot be eliminated through diversification, also known as systematic or market risk.

Market Portfolio

A theoretical portfolio of all assets in the market, with each asset weighted according to its market capitalization.