Show the effect of each of the transactions below on total assets and working capital by using one of the following symbols in each box to complete the table.

Question

Quizplus · Accepted Answer

1. Transaction increases cash and decreases accounts receivable. The net effect is zero on both current assets and working capital.
2. Transaction increases cash and decreases long term assets. The net effect is an increase on current assets and working capital.
3. Transaction decreases cash and retained earnings. The net effect is a decrease in current assets and working capital.
4. Transaction decreases cash and net income (retained earnings). The effect is a decrease in current assets and working capital.
5. Transaction decreases cash and increases long term assets. The effect is a decrease in current assets and working capital.
6. Transaction decreases cash and increases inventory (a current asset). The net effect is zero on current assets and working capital.

Show the Effect of Each of the Transactions Below on Total