Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$

question 8

Short Answer

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Susan Englert began her sole proprietorship on January 7, 2014 by contributing $10,000 cash to the business. Indicate the effects of this transaction on the business's financial statements. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Indirect Sequence

A communication strategy that presents supporting details and evidence before revealing the main idea or conclusion.

Neutral-News Messages

Communications that are intended to inform without showing bias or eliciting strong emotional reactions.

Inductive Sequence

A logic sequence that builds from specific instances to a general conclusion, often used in reasoning or in creating narratives.

Supporting Details

Information or evidence provided in a text to explain, prove, or reinforce the main point or argument.