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

question 13

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. $\text { Increase }=I \quad \text { Decrease }=D \quad \text { No Effect }=N$
Ferguson Co. issued common stock for $50,000 cash. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

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Definitions:

Marginal Cost

The leap in all-encompassing expenses associated with the production of an additional unit of a product or service.

Average Total Cost

The cost of producing everything, when divided by the number of units made, signifies the cost for each unit produced.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the variable costs per unit of output.

Mud Statues

Sculptures made from mud or clay, often created as part of artistic or cultural traditions.