Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \text { Decrease } = \mathrm { D } \text { No Effect } = \mathrm { N }$$

question 113

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. $$\text { Increase } = \mathrm { I } \text { Decrease } = \mathrm { D } \text { No Effect } = \mathrm { N }$$
On September 30, 2014, Falls Company collected the accrued interest revenue on a one-year note receivable dated October 1, 2010. Show the effect of the collection of previously-accrued interest on Falls' financial statements.

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Definitions:

Riskiness Of Investments

The degree of uncertainty associated with the returns on investments, indicating the potential to lose some or all of the original investment.

Investment Turnover

A financial ratio that measures the efficiency of a company's use of investments in assets to generate sales or revenue.

Return On Sales

A financial ratio that calculates the percentage of sales revenue that has turned into profits, indicating how efficiently a company is operating.

Sales Revenue

The full income received from goods sales or service delivery before taking out any operational costs or expenditures.