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 January 1, Year 1, Flagler Corporation signed a contract with City Bank for a line of credit that permitted Flagler to borrow up to $50,000. Indicate the effects of signing this contract.
Definitions:
Corporate Responsibility
The ethical and moral obligation of companies to consider the impacts of their activities on stakeholders and the environment.
Shareholder Theory
The belief that the primary responsibility of a corporation is to maximize the wealth of its shareholders.
Utilitarianism
A philosophical theory that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.
Toxic Environment
Conditions in a workplace or other environment that are harmful to employees' or inhabitants' health, well-being, or performance, often due to dangerous chemicals or a hostile work culture.
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