For Each of the Following, Indicate Whether the Transaction Increased

question 234

Essay

For each of the following, indicate whether the transaction increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and equity using the following format.
Assets = Liabilities + Equity
1. Issued ordinary shares in exchange for cash.
2. Billed customers for services performed.
3. Purchased equipment on account.
4. Paid dividends.
5. Paid for equipment purchased in 3. above.

---

Definitions:

Business Model

A framework for creating value, capturing value, and delivering products or services to customers.

Revenue Model

The strategy or method a business uses to generate income or revenue, detailing the sources of revenue, pricing methodologies, and target consumer segments.

Create

To bring something into existence; to generate or produce an idea, product, or solution.

Razor-And-Razor-Blade

A business model where a company sells a durable product at a low price (razor) and then sells consumable products that are needed to use the initial product (razor blades) at a higher margin.