Clark Bell started a personal financial planning business when he accepted $56,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period begianing June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.) CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Stockholders' Equity Retained Earnings Assets Liabilities Income Statement Statement of Cash Flow Event Unearned Cash Revenue Expense = Net Income Revenue 1. Advance payment 2. Revenue earned Totals %3D

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.