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A,.Which of the following shows how acquiring cash from the issue of common stock will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | + | = | NA | + | + | NA | | NA | = | NA | NA |
| B. | + | = | NA | + | + | NA | | NA | = | NA | + IA |
| C. | + | = | NA | + | + | NA | | NA | = | NA | + FA |
| D. | + | = | NA | + | + | + | | NA | = | + | + FA |
b. Which of the following shows how borrowing cash from creditors will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | + | = | + | + | NA | NA | | NA | = | NA | + FA |
| B. | + | = | + | + | NA | NA | | + | = | | + FA |
| C. | + | = | + | + | NA | NA | | NA | = | NA | + IA |
| D. | + | = | NA | + | + | + | | NA | = | + | + FA |
c. Which of the following shows how recognizing cash revenue will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | + | = | NA | + | + | NA | | NA | = | NA | NA |
| B. | + | = | NA | + | + | + | | NA | = | + | NA |
| C. | + | = | NA | + | + | + | | NA | = | + | + OA |
| D. | + | = | NA | + | + | + | | NA | = | + | + IA |
d.Which of the following shows how incurring cash expenses will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | | = | NA | + | + | NA | | + | = | | OA |
| B. | | = | NA | + | | NA | | + | = | | OA |
| C. | | = | NA | + | | NA | | + | = | + | OA |
| D. | | = | NA | + | | NA | | + | = | | FA |
e. Which of the following shows how paying a cash dividend will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | | = | NA | + | + | NA | | + | = | | OA |
| B. | | = | NA | + | | NA | | + | = | | OA |
| C. | + | = | NA | + | + | NA | | NA | = | NA | FA |
| D. | | = | NA | + | | NA | | NA | = | NA | FA |
f. Which of the following shows how paying cash to reduce long-term liabilities will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | + | = | | + | NA | NA | | NA | = | NA | FA |
| B. | | = | | + | NA | NA | | NA | = | NA | IA |
| C. | | = | | + | NA | NA | | + | = | | FA |
| D. | | = | | + | NA | NA | | NA | = | NA | - FA |
g. Which of the following shows how paying cash to purchase land will affect a companys financial statements?
| Balance sheet | Income Statement | Statement of Cash Flows |
| | Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| A. | NA | = | NA | + | NA | NA | | NA | = | NA | IA |
| B. | NA | = | NA | + | NA | NA | | NA | = | NA | FA |
| C. | NA | = | NA | + | NA | NA | | + | = | | OA |
| D. | | = | | + | NA | NA | | NA | = | NA | - FA |
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Item 9
Item 9 Part 9 of 9 10 points
Watt Company experienced an event that had the following effects on its financial statements.
| Balance sheet | Income Statement | Statement of Cash Flows |
| Assets | = | Liabilities | + | Equity | Rev. | | Exp. | = | Net Inc. |
| | | | NA | NA | | NA | | NA | FA |
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