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 104

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Bryan Co. paid $40 for freight cost to have merchandise shipped to one of its customers. Show how the transaction would affect Bryan'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:

Object Permanence

A cognitive development milestone in which an infant realizes that objects continue to exist even when they cannot be seen or heard.

Sensorimotor

The stage in Jean Piaget's theory of cognitive development where infants learn to interact with their environment through physical actions, from birth to about 2 years of age.

Cognitive Development

The process of growth and change in intellectual capabilities that occur from infancy through independent adulthood, encompassing processes such as learning, memory, problem-solving, and decision-making.

Concrete Operations

A stage in Piaget's theory of cognitive development, occurring between ages 7 and 11, where children gain a better understanding of mental operations and can think logically about concrete events.