For questions 135 through 137:Indicate how each event affects the financial statements model. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element is offset by a decrease in that same element.)Venture Company paid $50 of interest expense that had been previously accrued.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(D) (D) (NA) (NA) (NA) (NA) (D)
Paying accrued interest expense decreases assets (cash) and decreases liabilities (interest payable). It does not affect the income statement, but is reported as a cash outflow for operating activities on the statement of cash flows.
You might also like to view...
Many banks, accounting firms, and consulting companies use seminars to generate new prospects
Indicate whether the statement is true or false
Brazilian résumés are quite different from U.S. résumés
Indicate whether the statement is true or false.
Strategic reasons for undertaking a corporate venture do not include
A. expanding capabilities by acquiring new knowledge. B. reinforcing stakeholder commitment. C. building the base of corporation resources. D. entering into new markets.
Which of the following statements is true of customer relationship management (CRM) systems?
A) They are applications used for consolidating business operations into a single, consistent, computing platform. B) They vary in the degree of functionality they provide. C) They incorporate accounting, manufacturing, inventory, and human resources applications. D) A major disadvantage of these systems is a lack of consistency in data.