Show the Effect of Each of the Transactions Below on Total

question 85

Essay

Show the effect of each of the transactions below on total assets and the current ratio by using one of the symbols in each box to complete the table.If the numerator and denominator of a ratio both increase or both decrease by the same amount,the effect of the event on the ratio is "O" or no effect.
$\begin{array}{lc}\text { Efiect } & \text { Symbol } \\\hline \text { Increase } & + \\\text { Decrease } & - \\\text { No effect } & N \\\text { Insufficient Data } & 0\end{array}$
$\begin{array}{|l|l|l|}\hline& \begin{array}{c}\text { Effect on } \\\text { Total Assets }\end{array} & \begin{array}{c}\text { Effect on the } \\\text { Current Ratio }\end{array} \\\hline \begin{array}{l}\text { Cash received from customers for accounts } \\\text { receivable balances due }\end{array} & & \\\hline \begin{array}{l}\text { Cash sales of long-term assets for an amount } \\\text { in excess of cost }\end{array} & & \\\hline \text { Declaration and payment of cash dividends } & & \\\hline \text { Payment of interest expense } & & \\\hline \text { Purchase of long-term assets for cash } & & \\\hline \text { Purchase of office supplies for cash } & & \\\hline\end{array}$