Financial Assets--Effects of Transactions

question 88

Essay

Financial assets--effects of transactions
Five events involving financial assets are described below:
(a.) Received dividends earned on investment in marketable securities.
(b.) Invested excess cash in marketable securities.
(c.) Determined that a specific account receivable is worthless and wrote it off against the allowance for doubtful accounts.
(d.) Made sale of merchandise for cash.
(e.) Sold available-for-sale marketable securities at a loss. Cash proceeds from the sale were equal to the current market value reflected in the last balance sheet.
Indicate the effects of each independent transaction or adjusting entry upon the financial measurements shown in the four column headings below. Use the code letters, I for increase, D for decrease, and NE for no effect.

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Definitions:

Labor Market Discrimination

Unfair treatment of workers based on race, gender, age, religion, or other non-economic factors, affecting their employment opportunities and wages.

Equivalent Labor Resources

A concept comparing the productivity or value of labor between different industries or economies, taking into account factors like skill levels and hours worked.

Productive Contributions

Inputs or actions by individuals or entities that add value to the production process, resulting in the creation of goods or services.

Cardiovascular Risk

The likelihood of an individual experiencing cardiovascular events such as heart attack or stroke, often assessed based on factors like age, genetics, lifestyle, and medical history.