Indicate How Each Event Affects the Elements of Financial Statements

question 112

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. You do not need to enter dollar amounts. 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.
Increase = IDecrease = DNot Affected = NA
Perez Company paid $220,000 cash for salaries expense.

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Definitions:

Absorption

The process by which substances are taken up and assimilated into the body, such as nutrients from the digestive tract into the bloodstream.

Mechanical Breakdown

The physical process of breaking food into smaller pieces, an essential part of digestion.

Chemical Digestion

The process of breaking down food in the gut into smaller components, using enzymes, so they can be absorbed into the body.

Common Hepatic Duct

A duct in the liver that conveys bile from the liver to the cystic duct and then to the gallbladder.