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 79

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Shaffer Co. declared and distributed a 5 percent stock dividend. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Contextual Variables

Factors that influence the setting or environment in which behaviors, events, or data are situated, affecting their interpretation.

Informed Decision

A decision made based on a thorough understanding of the facts, implications, and consequences, often involving the consultation of relevant information or advice.

Appropriate Language

The use of language that is considered suitable and respectful within a particular context or setting, taking into account cultural and situational sensitivities.

User's Manual

A document providing instructions for the installation, operation, and maintenance of a product or system.