For Each of the Following Indicate Whether the Transaction Affects

question 72

Essay

For each of the following indicate whether the transaction affects revenue (R) expense (E) owner's drawing (D) owner's investment (I) or no effect on owner's equity (NOE).
1. Made an investment to start the business.
2. Billed customers for services performed.
3. Purchased equipment on account.
4. Paid monthly rent.
5. Withdrew cash for personal use.

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Definitions:

Accounts Payable

An accounting recording of amounts a company owes to suppliers for goods or services purchased on credit.

Net Income

The amount of money remaining from revenues after all the firm's expenses are subtracted.

Statement of Cash Flows

A report that details a company’s cash inflows and outflows from operations, investing, and financing, showing how cash levels change over time.

Accounts Receivable

Amounts owed to a business by its customers for goods or services sold on credit.