What is the effect of transaction on the financial statement

Assignment Help Financial Accounting

Reference no: EM132655980

Problem 1: Stability deals with the relationship between debt and equity.

Group of answer choices

Option 1: True

Option 2: False

Problem 2: A firm collects $20,000 cash on a sale that occurred 30 days ago. What is the effect of this transaction on the financial statements?

Group of answer choices

Option 1: Revenues increase and current liabilities increase.

Option 2: Current assets decrease and revenue decreases.

Option 3: None of these.

Option 4: There is no impact to the financial statements.

Option 5: Current assets (cash) increase and current assets (A/R) decrease.

Problem 3: When does cash flow increase?

Group of answer choices

Option 1: when revenue is reduced

Option 2: when inventories are reduced

Option 3: none of these

Option 4: when non-current assets are purchased

Option 5: when trade receivables are increased

Reference no: EM132655980

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