Use I = Increase, D = Decrease, or N =

question 9

Essay

Use I = Increase, D = Decrease, or N = No effect, to indicate the effect on retained earnings for each of the listed transactions.

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Definitions:

Professional Services

Services provided by individuals or firms possessing specialized knowledge and expertise, such as legal, accounting, or consulting services.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various forms of machinery and human labor in a process known as manufacturing.

Factory Overhead

All the overhead costs related to the production process, except for the expenses on direct materials and direct labor.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.