Indicate How Each Event Affects the Elements of Financial Statements

question 127

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 amounts.Assume that Frank Company uses a perpetual inventory system.

-Whetzel Co.sold merchandise to a customer for $950 on account.Whetzel's cost of the merchandise was $600.

---

Definitions:

Efficiency

The optimal use of resources to achieve the best possible outcome.

Opportunities

Options or possibilities for individuals or firms to engage in beneficial activities or investments.

Equity

Fairness or justice in the way people are treated or how resources and wealth are distributed.

Efficiency

A measure of how well resources are used to produce goods and services without waste.