Ask Question
13 November, 14:21

Forest Beach Company experienced an event that had the following effects on its financial statements. Balance sheet Income Statement Statement of

Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flows

NA = NA + NA NA - NA = NA + IA

Which of the following events could have caused these effects?

a. Accrued interest revenue.

b. Loaned cash to an employee.

c. Collected cash for the principal balance of a note receivable.

d. Borrowed cash from a bank.

+2
Answers (1)
  1. 13 November, 14:35
    0
    (C) Collected cash for the principal balance of a note receivable

    Explanation:

    This is so because paying off principal balance of a note payable will definitely reduce cash asset and ultimately lead to liabilities of note payable. The cash outflow from the payoff of the note payable would be classified as a financing activity, and this way the the income statement is not affected.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Forest Beach Company experienced an event that had the following effects on its financial statements. Balance sheet Income Statement ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers