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 = DNo Effect = NAt the end of the accounting period, Signet Co. recognized accrued salaries.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeCash Flow???????
What will be an ideal response?
(N) (I) (D) (N) (I) (D) (N)
Accruing salaries expense increases liabilities (salaries payable) and it increases expenses, which decreases net income and equity (retained earnings). It does not affect the statement of cash flows.
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Pierre owns a one-quarter undivided interest in a parcel of land, and he wants his interest transferred to his sister Estelle. As a general rule, which of the following actions will transfer Pierre's undivided interest out of his name?
A) Redemption from foreclosure sale B) Making and signing a will C) Delivery of a deed D) Signed acceptance of offer to purchase
Do not use jargon unless your readers ___________________
a. will understand it b. will be writing in response c. are experts in a field that uses the same language d. can ask you questions