Financial Assets--Effects of Transactions
Five Events Involving Financial Assets Are

question 73

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.
$$\begin{array} { | c | c | c | c | c | } \hline & & & \text { Net Cash Flow } & \text { Net Cash Flow } \\\hline & & \text { Net } & \text { from Operating } & \text { (from Any } \\\hline \text { Transaction } & \text { Current Assets } & \text { Income } & \text { Activities } & \text { Source) } \\\hline \text { A } & & & & \\\hline \text { B } & & & & \\\hline \text { C } & & & & \\\hline \text { D } & & & & \\\hline \text { E } & & & & \\\hline & & & & \\\hline\end{array}$$

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Definitions:

Prospect Response

The reaction or feedback from a prospective buyer upon receiving a sales pitch or proposal.

Post-sale Dissonance

A psychological state of unease or anxiety that consumers may experience after making a purchase, often due to conflicting thoughts about the decision.

Theater Productions

are live performances presented on stage by actors and crew to an audience, encompassing plays, musicals, and other forms of dramatic art.

Stage-rigging System

Equipment and processes used in theaters and entertainment venues to mechanically lift and manipulate stage scenery, lights, and effects.