Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NAmity Co. signed contracts for $25,000 of services to be performed in the future.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeCash Flow???????

What will be an ideal response?


(N) (N) (N) (N) (N) (N) (N)
This event does not affect the financial statements at all. Revenue is recorded when services are performed, not when the contract is signed.

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