Delta Company Experienced an Accounting Event That Affected Its Financial

question 70

Multiple Choice

Delta Company experienced an accounting event that affected its financial statements as indicated below:
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \text { Asset } & = & \text { Lizb. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } & \begin{array} { c } \text { Strnt d } \\\text { Cash Flows }\end{array} \\\hline - & = & \text { NA } & + & - & \text { NA } & - & + & = & - & - \text { OA } \\\hline\end{array}$$
Which of the following accounting events could have caused these effects on the elements of Delta's statements?

• A) Paid a cash dividend
• B) Incurred a cash expense
• C) Borrowed money from a bank
• D) Earned cash revenue

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Definitions:

Welfare

Programs and policies designed to help individuals and families in need, usually provided by the government.

Stagflation

A situation in the economy characterized by slow growth and high unemployment coupled with high inflation.

Price Level

The total mean price of the complete array of goods and services in the economy.

Real Output

Real output refers to the total amount of goods and services produced, adjusted for price changes and inflation, giving a more accurate reflection of an economy's size and growth.