Indicate the Effect That Each of the Following Transactions Has

question 99

Essay

Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (D) for decrease, and (N) for no change.
a) ________ Increase in inventory, paid with cash
b) ________ Sale of common stock for cash
c) ________ Payment of cash dividends
d) ________ Depreciation expense for the period
e) ________ Payment of long-term debt
f) ________ Loan of money to another company
g) ________ Increase in Accounts Payable
h) ________ Purchase of equipment on account

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Definitions:

Society's Expense

The costs or negative outcomes borne by the general public or society at large, often as a result of business activities or policies.

Government Guarantees

Government guarantees refer to promises made by the government to back certain obligations of entities, reducing risk for investors and encouraging investment in specific areas.

Socialize Losses

A policy or practice where financial losses are distributed across the broader society, typically through government intervention, instead of being borne solely by those who incurred the losses.

Privatize Gains

The concept where profits are allocated to private individuals or corporations rather than being shared with the public or society at large.