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:

Sexual Arousal

The state of being alert to sexual attraction and primed for engaging in sexual acts.

Watching

The act of observing or monitoring something or someone over a period of time for the purpose of entertainment, information gathering, or surveillance.

In the Nude

The state of being undressed or without clothing.

Pedophilic Disorder

A psychiatric disorder characterized by adult sexual interest in prepubescent children.