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 dollar 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 = NANorth Co. issued a note to purchase a building.Assets=Liabilities+Common Stock+Retained Earnings???????
What will be an ideal response?
(I) (I) (NA) (NA)
Issuing a note to purchase a building is an asset source transaction that increases a business's assets (building) and increases its liabilities (notes payable). It does not affect net income or the statement of cash flows.
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Which of the following is a factor considered by authorities in evaluating the mergers of banks?
A. The level to which the new bank increases competition in the market B. The number of employees in the new bank C. The adequacy of the financial and managerial resources of the new bank D. The value of the total assets owned by the new bank
Which of the following is true about using air carriers as a transportation mode when shipping products?
A) Air carriers are the most cost-effective way to ship non-perishable goods over short distances. B) Air carriers are the slowest and least reliable modes of transport. C) Air carriers provide in-transit services such as the processing of goods en route. D) Air carriers are ideal when time is short and speed is needed. E) Air carriers are a specialized means of shipping chemicals from sources to markets.
Extended purchase price added to the nonperformance costs, all divided by extended purchase price, equals:
a. total cost of ownership (TCO) b. early supplier involvement (ESI) c. supplier performance index (SPI) d. value in use (VIU)
Which of the following types of property would be considered "goods" under the Uniform Commercial Code?
A) a promissory note B) a stock C) a patent D) a computer