Answer:
c. Decrease liabilities and increase revenues.
Explanation:
Duluth Co. collected a $6,000 cash advance from a customer on November 1, 2016 for work to be performed over a six-month period beginning on that date.
If the year-end adjustment is properly recorded, the effect of the adjusting entry on Duluth's 2016 financial statements will be a decrease in liabilities and increase in revenues.
This will be the case because when Duluth Co. collected a $6,000 cash advance from a customer on November 1, it would have passed the following entries:
Dr Cash................$6000
Cr Prepaid Revenue...$6000
But note that 'prepaid revenue' is a liability which is why it has a credit balance.
By year end, the adjustment will be to take credit to revenue for 2 months that has elapsed for November and December, which is 2/6 x $6000.
Hence the entry will be:
Dr. Prepaid Revenue.....$2000
Cr. Revenue....................................$2000
which implies that the liability of prepaid revenue has reduced and revenue has increased
Answer:
104,000
Explanation:
The computation of diluted earnings per share for the quarter is shown below:-
Particulars Shares
Proceeds from exercise of options a $126,000
(18,000 × $7)
Used to repurchase of common stock b $14,000
( $126,000 ÷ $9)
Number of shares if option is exercised c 18,000
Less: Shares assume repurchased d 14,000
Potential Diluted common shares (e = c-d) 4,000
Add: Number of common shares f 100,000
Number of shares diluted earning per share 104,000
(e + f)
So, to reach the Number of shares diluted earning per share we simply add number of number of common shares with potential diluted common shares.
<h3>Hello there!</h3>
Your question asks what is financial literature.
<h3>Answer: Knowledge and skills that someone has in making good decisions with the financial sources that they have.</h3>
When you look at the word "financial literature", you can see that it has the word "financial" in it, so that means that it's going to be based off of finance.
Financial literature is knowledge and skills someone has in finance. What this means is that someone has knowledge on how finance works and know ways to stay financially stabled. The knowledge that someone could have is how money works, how to manage the money, and how to turn the money they already have into more money.
The knowledge that an individual could attain from financial literacy could help them in the long run, in which it's highly recommended to learn financial literacy, due to the fact that tons of people are going into debt because they don't know how to manage their finances.
To sum it up, people who know financial literacy would have a high chance in knowing how to manage their money and stay out of debt.
<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
