Craig Company experienced an accounting event that is recorded in the T-accounts as follows:

How does this event affect the elements of Craig's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question

Craig Company experienced an accounting event that is recorded in the T-accounts as follows:

How does this event affect the elements of Craig's financial statements?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Issuing a discount note increases assets (cash)and increases liabilities (notes payable,less discount on notes payable).The cash received is reported as a cash inflow for financing activities.

Craig Company Experienced an Accounting Event That Is Recorded in the T-Accounts