Indicate How Each Event Affects the Horizontal Financial Statements Model

question 103

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. You do not need to enter amounts.Increase = I Decrease = D Not Affected = NAOn December 31, Year 1, Tiller Company paid cash for interest on bonds it had issued on January 1, Year 1 at 98, and amortized part of the discount on bonds. Tiller Company uses the effective interest method of amortizing bond discounts. Indicate the effects of the amortization of the discount only.

---

Definitions:

Life Expectancy

The average period that a person may expect to live.

Mortality Rates

The measure of the number of deaths in a particular population, typically expressed per 1,000 individuals or as a percentage, over a specific period of time.

Ageism

Prejudice or discrimination against a person (most commonly an older person) based on age.

Preoperational Thinking

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.