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 94

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Terrace Company examined its contingent liabilities and determined that for one of the liabilities, the likelihood of a future obligation was probable and that the amount could be estimated. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

IPS

In-Plane Switching, a technology for LCD displays that offers wider viewing angles and better color accuracy, or Intrusion Prevention System, designed to detect and prevent network breaches.

DNS

Domain Name System, a hierarchical and decentralized naming system for computers, services, or any resource connected to the internet or a private network that translates domain names to IP addresses.

IP Address

A distinct sequence of numbers divided by dots, which serves to identify every device that communicates across a network using Internet Protocol.