Indicate How Each Event Affects the Elements of Financial Statements $\begin{array}{lll}\text { Increase }=I & \text { Decrease }=D & \text { No Effect }=N\end{array}$

question 34

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. $\begin{array}{lll}\text { Increase }=I & \text { Decrease }=D & \text { No Effect }=N\end{array}$
Patterson Co. paid $50,000 cash to purchase land. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

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Definitions:

Contingent Liability

A possible monetary liability that could arise based on the result of an upcoming event.

Estimable

Capable of being estimated or approximated in quantity or degree.

Remote Event

An event or condition with a very low chance of occurring, often considered insignificant in financial forecasting and analysis.

Probable Likelihood

This term refers to the high chance of occurrence or expectation that a specific event or outcome will happen.