Indicate How Each Event Affects the Elements of Financial Statements

question 33

Essay

Indicate how each event affects the elements of financial statements. 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. Enter only one letter for each element.Increase = I Decrease = D Not Affected = NAIn preparing the bank reconciliation for Heath Company, an employee found that a certified check that the company had used to settle an account payable remained outstanding.

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Definitions:

Repossessed

The act of a lender taking back an object, typically a vehicle or property, from the borrower due to failure to make the agreed-upon payments.

Legal Processes

Formal procedures and practices followed in the administration of justice, including litigation and judicial decisions.

Financing Statement

A document filed to give public notice to third parties of a security interest in personal property.

Legal Terminology

Specialized language used in the field of law, encompassing terms, phrases, and principles pertinent to legal proceedings and documentation.