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 78

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. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
Ransom Co. sold merchandise to a customer for $1,000 on account. Ransom's cost of the merchandise was $800. Show how the transaction would affect Ransom'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:

Global Trade Flows

The movement of goods and services across international borders, reflecting the interconnectedness of global economies.

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of illness or the maintenance of health.

Labor Pool

The supply of available workers in a particular area or from a specific industry or occupation.

Exports from the United States

Goods or services produced within the United States and sold to buyers in other countries.