Examples: Receive payment in cash for outstanding account receivable Assets Liability Equity Increase Increase Increase Liability Equity Decrease Decrease Decrease 2. The company purchases land by paying half in cash and signing a note payable for the other half Assets Increase Increase Increase No effect No effect No effect Decrease Decrease Decrease No effect No effect No effect 3. Cash received in advance from client for services is recorded in unearned revenue. Assets Increase Decrease No effect Liability Increase Decrease No effect Equity Increase Decrease No effect

Examples: Receive payment in cash for outstanding account receivable Assets Liability Equity Increase Increase Increase Liability Equity Decrease Decrease Decrease 2. The company purchases land by paying half in cash and signing a note payable for the other half Assets Increase Increase Increase No effect No effect No effect Decrease Decrease Decrease No effect No effect No effect 3. Cash received in advance from client for services is recorded in unearned revenue. Assets Increase Decrease No effect Liability Increase Decrease No effect Equity Increase Decrease No effect

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23: Statement Of Cash Flows

Section: Chapter Questions

Problem 1CE

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