Show Which Columns Would Contain the Adjusted Balances by Placing

question 71

Essay

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column.Assume all accounts have normal balances.
$\begin{array}{llcc}& \text { Income Statement } &&\text {Balance Sheet} \\ \text { Debit } &\text {Credit}&\text { Debit }& \text {Credit}\\ \text { } &\\ \text { } &\\ \text { } &\\ \text { } &\\\end{array}$

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Definitions:

Operating Activities

Business functions directly related to providing goods or services, such as sales, production, and day-to-day administration.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset’s consumption or wear and tear.

Accounts Receivable

Accounts receivable is a balance sheet item representing money owed to a business for goods or services delivered but not yet paid for by customers.

Indirect Statement

A financial statement method typically used in cash flow statements to adjust net income for changes in non-cash accounts.