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:

Sensory Memory

A very short-term form of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Suggestive Interviewing

A technique in interviewing that may lead or influence individuals to recall events or details in a biased or particular way.

False Memory

A phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.

Mood-Congruent Memory

The tendency of individuals to recall memories that are consistent with their current mood.