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 98

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 December 31, 2014, Sweetwater Co. paid cash for interest on bonds it had issued on January 1, 2014. Indicate the effects of the payment of interest. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

Understand the characteristics and behaviors that contribute to effective entrepreneurship.

Recognize the importance of discipline and its impact on workforce behavior and performance.

Identify leadership qualities of historical figures and their relevance to modern leadership.

Comprehend the requirements and impact of effective organization development initiatives.

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Definitions:

Extraordinary Event

An event or transaction that is distinct from the ordinary and typical activities of a business and is both unusual and infrequent.

Earthquake

A natural phenomenon characterized by the shaking of the surface of the Earth, often caused by the movement of tectonic plates.

Tornado

A violently rotating column of air extending from a thunderstorm to the ground, capable of vast destruction.

Inventory Method

An accounting technique used to determine the cost of goods sold and the end-of-period inventory valuation.