Indicate How Each Event Affects the Elements of Financial Statements

question 77

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.

-Perez Co.paid $220,000 cash in salaries to its employees.

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Definitions:

Privity

A legal concept indicating a close, mutual, or successive relationship to the same right of property or the power to enforce a promise or warranty.

Due Diligence

The investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract.

Accountant-Client Privilege

A legal principle that protects communications between a certified accountant and their client from being disclosed without the client's permission.

Statutorily Recognize

Formally acknowledged or established by law or statute.