Financial Assets--Effects of Transactions
Five Events Involving Financial Assets Are

question 168

Essay

Financial assets--effects of transactions
Five events involving financial assets are described below:
(a.) Received dividends earned on investment in securities.
(b.) Invested excess cash in investments in securities.
(c.) Determined that a specific account receivable is worthless and wrote it off against the allowance for impairment.
(d.) Made sale of merchandise for cash.
(e.) Sold available-for-sale securities at a loss. Cash proceeds from the sale were equal to the current market value reflected in the last balance sheet.
Indicate the effects of each independent transaction or adjusting entry upon the financial measurements shown in the four column headings below. Use the code letters, I for increase, D for decrease, and NE for no effect.
$\begin{array}{|c|c|c|c|c|} \hline& & & \text { Net Cash Flow } & \text { Net Cash Flow } \\\hline & & & \text { From Operating } & \text { (from Any } \\\hline \text { Transaction } & \text { Current Assets } & \text { Profits } & \text { Actitivities } & \text { Source) } \\\hline \mathrm{A} & \\\hline \mathrm{B} & \\\hline \mathrm{C} & \\\hline \mathrm{D} & \\\hline \mathrm{E} & \\\hline & \\\hline\end{array}$

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