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 95

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
On January 1, 2014, Spencer Corporation borrowed $20,000 on a line of credit from Mid-Rivers Bank. Show the effects of this transaction on Spencer'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:

Prestige

Social honor or respect seen as worth securing, often associated with a particular position or status within society.

Social Processes

The patterns of growth and change in a society over time, which influence and are influenced by human behavior.

Functions

The role or activity that something is expected to perform within a particular context.

Consequences

The results or outcomes of actions that may influence future events or behaviors.