Determine the Effect of the Following Transactions on the Identified

question 33

Essay

Determine the effect of the following transactions on the identified financial statement components and ratios.Code your answers as follows:
A: If the transaction results in an increase in the financial statement component or ratio.
B: If the transaction results in a decrease in the financial statement component or ratio.
C: If the transaction does not affect the financial statement component or ratio.
Transaction 1: A company paid for research and development costs incurred to develop a patent.
Net income _____
Property,plant,and equipment _____
Stockholders' equity _____
Net profit margin ratio _____
Transaction 2: Inventory was purchased on account.
Net income _____
Current assets _____
Current liabilities _____
Return on assets ratio _____

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Definitions:

Squamous Epithelium

A type of epithelial tissue consisting of flat, scale-like cells arranged in layers, found lining surfaces such as the skin.

Elastic

A material or property that allows an object to resume its normal shape spontaneously after being stretched or compressed.

Nitrates

Inorganic compounds made of one nitrogen atom and three oxygen atoms that are commonly found in fertilizers and can be naturally present in water and soil.

Sedentary Lifestyle

A lifestyle characterized by a significant amount of sitting or inactivity, which can lead to health issues.