Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 8

Analyzing the Effects through of Transactions
Six events pertaining to financial assets aredescribed as follows:
a.Invested idle cash in marketable securities and classified them as available for sale.
b. Collected an account receivable.
c. Sold marketable securities at a loss (proceeds from the sale were equal to the market value reflected in the last balance sheet).
d. Determined a particular account receivable to be uncollectible and wrote it off against the Allowance for Doubtful Accounts.
e. Received interest earned on an investment inmarketable securities (company policy is to recognize interest as revenue when received).
f. Made a fair value adjustment increasing the balance in the Marketable Securities account to reflect a rise in the market value of securities owned.
Indicate the effects of each transaction or adjusting entry upon the financial measurements in the four column headings listedbelow.se thecode letters I•for increase, D for decrease, and NE for no effect.ash flow classifications were discussed in Chapter 2.