Dover Company Experienced an Accounting Event That Affected Its Financial

question 5

Multiple Choice

Dover Company experienced an accounting event that affected its financial statements as indicated below: $$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Assets } \\-\end{array} & = & \begin{array} { c } \text { Liab. } \\\text { NA }\end{array} & + & \text { Equity } & \begin{array} { c } \text { Rev } \\\text { NA }\end{array} & - & \begin{array} { c } \text { Exp } \\+\end{array} & = & \begin{array} { c } \text { Net } \\\text { Inc. } \\-\end{array} & \begin{array} { c } \text { Cash } \\\text { Flow } \\\text {-OA }\end{array} \\\hline\end{array}$$ Which of the following accounting events could have caused these effects on Dover's statements?

• A) Paid a cash dividend.
• B) Earned cash revenue.
• C) Borrowed money from a bank.
• D) Incurred a cash expense.

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Definitions:

Base-case Analysis

An evaluation technique in which the projected performance of a project is calculated under a set of assumptions considered most likely or average.

Sensitivity Analysis

A method employed to ascertain the impact of varying independent variable values on a specific dependent variable, based on certain assumptions.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes.

Competitive Analysis

The process of evaluating the strengths and weaknesses of competitors within the same market to develop strategic advantages.