Use the Following to Answer Questions

question 134

Essay

Use the following to answer questions
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.Enter only one letter for each element.

-Landau Company replenished its petty cash fund.The expenditures of the fund included postage,office supplies,and other miscellaneous items.Indicate the effects of recognizing the expenditures on financial statements and the replenishment of the petty cash fund.

---

Definitions:

Real Return

The profit or loss on an investment adjusted for inflation, reflecting the actual purchasing power of the return.

Small U.S. Stocks

Refers to shares in small-cap companies based in the United States, typically characterized by a small market capitalization.

Long-Term U.S. Treasury Bonds

Bonds issued by the U.S. government with a maturity of typically 20 or 30 years, considered to be one of the safest long-term investments.

EAR

stands for Effective Annual Rate, a calculation that reflects the annual interest on an investment or loan, taking into account the effect of compounding interest.