Indicate How Each Event Affects the Horizontal Financial Statements Model

question 39

Essay

Indicate how each event affects the horizontal financial statements model. Use the following letters to record your answer in the box shown below each element. 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 = NA
Stan's Surf Shack purchased 5 surfboards for $200 each. Later it purchased 2 more surfboards for $250 each. Stan's uses the perpetual inventory system. Assume that 6 surfboards were sold during the period for $350 cash each.
Assume that Stan's Surf Shack made the second purchase of surfboards for cash. How would that purchase affect the financial statements?

Explain the roles and importance of the IMF and WTO in international trade and economics.

Identify ethical issues specific to multinational corporations and international business practices.

Understand the concepts of behavioral economics with regard to human decision-making.

Understand the four stages of Piaget's theory of cognitive development and identify the milestones in each stage.

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Definitions:

Bank Overdraft

A facility that allows an individual or business to withdraw more money from a bank account than has been deposited, up to an agreed limit.

Notes Payable

A liability represented by a written promise to pay a specific sum of money, usually with interest, by a specified date.

Equipment

comprises tangible assets used in operations, such as machinery and office hardware, which have a useful life beyond one year and assist in the production of goods and services.

AASB 132

Refers to the Australian Accounting Standards Board standard on Financial Instruments: Presentation, which covers the presentation of financial instruments in financial statements.