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:

Rosenthal Effect

The phenomenon in which the higher expectations placed upon individuals either by themselves or others lead to better performance; also known as the Pygmalion effect.

Quasi-experimental Designs

Research methods that aim to evaluate interventions without using random assignment, often by comparing groups that naturally exist.

Experimenter Bias

A process where the scientists conducting an experiment influence the results, intentionally or unintentionally, in a direction consistent with their hypothesis.

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.