Increases (I), Decreases (D), or No Effect (NE).................................
ID: 2355764 • Letter: I
Question
Increases (I), Decreases (D), or No Effect (NE).......................................................................... 1. Equipment is purchased for cash........................................ 2. Services are provided to customers on account................................... 3. Services are provided to customers in exchange for cash................................................. 4. An account payable is paid off................................... 5. Cash is collected on an account receivable................................................. 6. Buildings are purchased in exchange for a three-year note payable. ................................................. 7. Advertising bill for month is paid.......................................... 8. Dividends are paid to stockholders........................................... 9. Land is acquired by issuing shares of stock to the owner of the land..................................Explanation / Answer
1. Equipment is purchased for cash NO EFFECT 2. Services are provided to customers on account INCREASES 3. Services are provided to customers in exchange for cash INCREASES 4. An account payable is paid off DECREASES 5. Cash is collected on an account receivable NO EFFECT 6. Buildings are purchased in exchange for a three-year note payable. INCREASE 7. Advertising bill for month is paid DECREASE 8. Dividends are paid to stockholders DECREASE 9. Land is acquired by issuing shares of stock to the owner of the land INCREASE Hope this helps!