Indicate How Each Event Affects the Elements of Financial Statements

question 80

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.Use only one letter for each element.You do not need to enter amounts.

-On January 1,2016,Torrance Co.issued $100,000 of bonds at the face value.Interest is paid in cash on December 31 of each year.Indicate the effects of the payment of interest on 12/31/2016.

---

Definitions:

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.

Marginal Rate

The rate of change in a quantity or cost in response to a one-unit change in another variable.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Utility

In economics, it represents a measure of satisfaction or happiness that consumers derive from the consumption of goods and services.