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Alex777 [14]
3 years ago
13

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa

ctions would have upon cash and net income. The first transaction has been completed as an example.(If an amount reduces the account balance then enter with negative sign preceding the number e.g 15,000 or parentheses e.g. (15,000).
Cash $-133 Net Income $0
(a) Purchased $133 of supplies for cash.
(b) Recorded an adjusting entry to record use of $31 of the above supplies.
(c) Made sales of $1,297, all on account. 1297 1164
(d) Received $865 from customers in payment of their accounts. 865 299
(e) Purchased equipment for cash, $2,528 -2528 -2229
(f) Recorded depreciation of building for period used, -610 2839
Business
1 answer:
Yuliya22 [10]3 years ago
8 0

Answer:

a.Cash - $133 Net Income $ 0

b.Cash $0  Net Income -$133

c.Cash $0  Net Income  $1,297

d.Cash $865  Net Income $0

e.Cash -$2,528 Net Income $0

f.Cash  $ 0 Net Income - $610

Explanation:

Item b. The Supplies Expenses will be recognized out of supplies account and this will reduce the Net Income

Item c.  Sales made on Account does not Affect cash but increases Net Income.

Item d. Receipts from Customers only affects Cash and no effect on Net Income.

Item e. Purchase of Equipment is a Capital Expenditure that only affects cash.

Item d. The depreciation expenses only affects Net Income.

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Explanation:

Operating activities : It includes all activities related to the changes in the working capital or changes in the current assets and current liabilities.

The increase in current liabilities increase the cash and decrease in current liabilities decrease the cash, so the adjustment is made accordingly. But it is opposite with the current assets.

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3 years ago
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Answer:

All answers are correct except Money Supply

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Money supply is a monetary policy and it is used by the central bank to achieve certain objectives (reduce inflation, stimulate growth, increase demand, etc.)

Government spending is a fiscal policy that government uses to achieve a set of objectives (i.e. to supply goods and services that are not provided by the market or private sector – construct bridges, provide health facilities, social programmes for the poor among others).

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