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 72

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
At December 31, Ransom Company recorded the interest that had accrued on its outstanding note payable. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

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Definitions:

Particles

Small localized objects to which can be ascribed several physical or chemical properties such as volume or mass.

Osmoregulation

The process by which living organisms control the concentration of water and electrolytes in their bodies to maintain homeostasis.

Concentration

The amount of a substance in a specific volume of solution, often measured in moles per liter.

Water

A ubiquitous chemical substance composed of hydrogen and oxygen, essential for all known forms of life and used in a wide range of industrial processes.