Indicate how each event affects the elements of the 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 = NA(Note that "No Effect" means that the event either does not affect the element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) Charles Company submitted payments for withheld state and federal employment taxes.AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(D) (D) (NA) (NA) (NA) (NA) (D)
Paying withheld employment taxes decreases assets (cash) and decreases liabilities (employee income tax payable). It does not affect the income statement. It is reported as a cash outflow for operating activities on the statement of cash flows.
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What criteria must be met for accepting any capital expenditure proposal with respect to minimum rate of return on investment?
An unconscionable contract can be enforced if the unconscionable clause is removed
Indicate whether the statement is true or false
All of the following would be paid under the PAP's Other than Collision coverage except:
A) the car skids out of control due to ice on the road, and hits a tree B) the driver of the car hits a bunny rabbit, loses control of the car, and runs into a ditch C) the windshield gets broken, and there is no known outside cause for the damage D) the car is damaged by a fire the insured negligently started while shooting off fireworks on the 4th of July