Determine the Effect of the Following Transactions on the Identified

question 78

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 accrued interest expense at year-end.
Net income_____
Assets_____
Stockholders' equity_____
Asset turnover ratio_____
Transaction 2: A company declared and paid dividends to stockholders.
Net income_____
Assets_____
Stockholders' equity_____
Return on assets ratio_____

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