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 62

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Ransom Company borrowed $10,000 by issuing a promissory note. The note was for twelve months at an annual interest rate of 8%. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Progressive Era

A period of widespread social activism and political reform across the United States, from the 1890s to the 1920s, aiming to address issues caused by industrialization.

ABA

American Bar Association, a professional organization for lawyers in the United States.

Reasonable Remedial Measures

Actions or interventions deemed appropriate and fair to correct a problem, address a wrongdoing, or provide relief and justice in a given situation.

Model Rule 3.3

Refers to a specific ethical guideline in legal practice that mandates attorneys to not knowingly make false statements of fact or law to a court or fail to correct false statements of material fact or law previously made.