Indicate How Each Event Affects the Horizontal Financial Statements Model

question 118

Essay

Indicate how each event affects the horizontal financial statements model. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. Use only one letter for each element. You do not need to enter amounts.
Increase = IDecrease = D No Affected = NAGrover Company declared a 2-for-1 stock split. Before that announcement, Grover had 40,000 shares of outstanding common stock.

---

Definitions:

Assimilation

Piaget’s term for incorporation of new information into an existing cognitive structure.

Accommodation

Adjusting one's schemas and understanding to incorporate new and differing information or experiences.

Schematization

The process of organizing information or experiences into schemas, which are mental structures that represent some aspect of the world.

Observational Learning

Learning through watching the behavior of others.