Use the following information to answer the questions below: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. Enter only one letter for each element.Increase = IDecrease = DNo Effect = NIn preparing the bank reconciliation for Heath Company, an employee found that the bank statement reported a bank service charge of $50.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeCash Flow???????
What will be an ideal response?
(D) (N) (D) (N) (I) (D) (D)
A bank service charge will create an adjustment to the book balance that will decrease assets (cash) and increase miscellaneous expenses, which in turn decreases net income and equity. It will be reported as a cash outflow for operating activities on the statement of cash flows.
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Norah is interested in developing her pricing policy. She wants to make a policy for which of the following?
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The most popular and widely used unincorporated business form that provides limited liability for its members is the:
A) limited partnership. B) limited liability partnership. C) limited liability company. D) limited liability limited partnership.
Over the long run, prudent financial planning will slowly eliminate the need for ________ insurance.
A) homeowner's B) automobile C) life D) renter's E) disability
The mean of the sample
A. is always smaller than the mean of the population from which the sample was taken. B. can never be zero. C. can never be negative. D. can assume any value between the highest and the lowest value in the sample.