Delta Company experienced an accounting event that affected its financial statements as indicated below:
$$\begin{array} { | c | c | c | c | c | c | c | }
\hline \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c }
\text { Common } \
\text { Stnck }
\end{array} & + & \begin{array} { c }
\text { Retained } \
\text { Earnings }
\end{array} \
\hline - & = & \mathrm { NA } & + & \mathrm { NA } & + & - \
\hline
\end{array}$$
Which of the following accounting events could have caused these effects on Delta's statements?

Question

Delta Company experienced an accounting event that affected its financial statements as indicated below:
$$\begin{array} { | c | c | c | c | c | c | c | } 
\hline \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c } 
\text { Common } \
\text { Stnck }
\end{array} & + & \begin{array} { c } 
\text { Retained } \
\text { Earnings }
\end{array} \
\hline - & = & \mathrm { NA } & + & \mathrm { NA } & + & - \
\hline
\end{array}$$
Which of the following accounting events could have caused these effects on Delta's statements?

Quizplus · Accepted Answer

The event indicates a decrease in assets and retained earnings with no effect on liabilities or common stock, which is consistent with incurring a cash expense.

Delta Company Experienced an Accounting Event That Affected Its Financial