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 = DNot Affected = NA(Note that "Not Affected" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Allen Co. purchased a $30,000 machine by making a $5,000 cash down payment and issuing a $25,000 note payable for the remaining balance.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(I) (I) (NA) (NA) (NA) (NA) (D)
The purchase increases assets (machine) and decreases assets (cash), for a net increase in assets. It also increases liabilities (notes payable). The cash outflow is reported as an investing activity on the statement of cash flows.
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With regard to the terms quality control and quality assurance, ______.
A. quality control is concerned with the quality of a product or service after it is produced or delivered B. quality assurance aims to improve a product or service’s quality after it is produced or delivered C. quality control is concerned with the quality of a product or service before it is produced or delivered D. quality control is concerned with the application of government regulations governing quality
U.S. GAAP requires firms holding securities available-for-sale to value the securities on the balance sheet after acquisition at
a. an amount based on acquisition cost. b. market value, with changes in market value of securities held at the end of the accounting period reported each period in income. c. market value, with changes in market value of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities. d. market value, with changes in market value of securities held at the end of the accounting period reported each period in retained earnings. e. present value of future cash flows, with changes in market value of securities held at the end of the accounting period reported each period in retained earnings.
Consensus comes about when
A) every member agrees completely on the decision. B) group members generally accept a decision and then give it their support. C) group conformity reaches a peak. D) group members practice individual decision making.
Most state constitutions are modeled after the ____________________
Fill in the blank(s) with correct word