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. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAA transaction recorded as a debit to Cash and a credit to Accounts Receivable.AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of IncomeCash Flows???????
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (I)
Collecting an account receivable increases one asset account and decreases another asset account. Debits increase asset accounts, such as cash, and credits decrease asset accounts, such accounts receivable. The income statement is not affected. There is a cash inflow from operating activities on the statement of cash flows.
You might also like to view...
Which journal is not used in the revenue cycle?
a. cash receipts journal b. sales journal c. purchases journal d. general journal
Type I error occurs when the sample results lead to the rejection of the null hypothesis when it is in fact true
Indicate whether the statement is true or false
Identify the doctrine which holds that employers are free to fire an employee at any time and for any reason unless an agreement specifies otherwise.
A. The doctrine of constructive notice B. The doctrine of constructive dismissal C. The doctrine of estoppel D. The doctrine of employment at will
Explain how the equity section of a balance sheet differs among sole proprietorships, partnerships and corporations.
What will be an ideal response?