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 128

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. Assume use of a perpetual inventory system. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Youkilis Co. sold merchandise to a customer for $2,400 cash. The merchandise had originally cost Youkilis $1,800. Show how the transaction would affect Youkilis's financial statements. $\begin{array} {| l| l| l| l| l| l| l| }\text { Assets}&\text { Liabilities }&\text {Equity}&\text { Revenues}&\text { Expenses }&\text { Net Income }&\text { Cash }\\\hline &&&&&\end{array}$

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Definitions:

Moratorium

A period of suspension or delay, often used in the context of a psychological phase where individuals explore different identities without making definitive commitments.

Fidelity

The degree of accuracy or faithfulness with which a copy replicates its source or a person remains loyal to their beliefs or commitments.

Sincerity

The quality of being free from pretense, deceit, or hypocrisy in one's actions and words.

Genuineness

The quality of being authentic and true to one’s feelings and thoughts in interactions with others.