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.) Charles Company paid Jason Hewitt for work he performed as an independent contractor. The amount owed had not been previously accrued.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(D) (NA) (D) (NA) (I) (D) (D)
Independent contractors are not subject to payroll taxes. The payment to the independent contractor decreases assets (cash) and decreases stockholders' equity (retained earnings). It increases expenses (external labor expense), which decreases net income. It is reported as a cash outflow for operating activities on the statement of cash flows.
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The income statement tells the reader about the actual cash inflows during a period of time
a. True b. False Indicate whether the statement is true or false
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What does the Self-Assessment and Improvement Process (SAIP) ethics survey instrument offer that other options, such as the Ethical Climate or the Ethical Culture surveys, do not?
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Objectives of the League of Nations effort to prevent misconduct by transnational corporations include respect for national sovereignty in countries where such companies operate, adherence to sociocultural values, respect for human rights, and
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