Indicate How Each Event Affects the Financial Statements

question 31

Essay

Indicate how each event affects the financial statements. 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 dollar amounts.
Increase = I Decrease = D Not Affected = NA
Gable Company collected a receivable due from a credit card company; the credit card fee had previously been recognized when the sale was recorded. Show the effect of the collection of the receivable on Gable's financial statements.

---

Definitions:

Displacement

A psychological defense mechanism where mind redirects emotions or feelings from the original source to a less threatening target.

Concepts

Abstract ideas or general notions that represent categories or classes of objects, events, or activities.

Language Acquisition Device

A hypothetical module of the human mind proposed by Noam Chomsky to account for the innate predisposition for language acquisition.

Cross-Linguistic Typology

The study of similarities and differences across languages with the aim of classifying and understanding the common properties and structural diversity of languages.