Assume that a company recorded the following journal entry: with regards to the impact of this journal entry.
a)_____ Cash decreasesb)_____ Total assets decreasec)_____ Liabilities decreased)_____ Cash flows from operating activities increasee)_____ Net income decreases

Question

Quizplus · Accepted Answer

b)True c)False d)False e)Ta)This is true. A credit to cash decreases that asset account.b)This is true. A credit to cash decreases total assets.c)This is false. There are no liabilities in this transaction.d)This is false. Cash decreases, so it would be reported as a cash outflow, not inflow.e)This is true. Salaries expense increases, which would cause net income to decrease.

Assume That a Company Recorded the Following Journal Entry: with Regards