For Each of the Following Transactions, Indicate the Type by Entering

question 102

Essay

For each of the following transactions, indicate the type by entering AS for asset source transactions, AU for asset use transactions, AE for asset exchange transactions, and CE for claims exchange transactions.Paid $2,000 in dividends to its stockholders.Recorded the accrual of $1,000 in salaries to be paid later.Issued common stock for $20,000 in cash.Earned revenue to be collected next year.Paid the salaries accrued in number 2 above.Received cash from customers in number 4 above.Purchased supplies on account.Received $500 from a customer for services to be provided later.

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Definitions:

Positive Economic Statement

A statement that can be proved or disproved by reference to facts.

Normative Economic Statement

A subjective statement that expresses an opinion or a value judgment about what ought to be, rather than what is.

Can Be Verified

Indicates that a certain piece of information, claim, or data can be checked and confirmed for accuracy or truthfulness.

Positive Economic Statement

An objective statement based on empirical evidence that describes the world as it is. These statements can be tested and validated through observation.