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 = IDecrease = DNot Affected = NAOn March 1, Year 2, King Company collected a note receivable and related interest from Havilland Company The note had been issued one year earlier. Indicate the effects of this event on the elements of King's financial statements.
Definitions:
Common Stock
A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and/or capital appreciation.
Call Option
The right, but not the obligation, to buy an underlying asset at a specified strike price within a specified time frame.
Futures Contract
A binding contract to trade a certain commodity or financial asset at a fixed price, with the transaction set to occur on a specified date in the future.
Debt Securities
Financial instruments representing money borrowed that must be repaid, with terms defining the interest rate and maturity date.
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