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Show the Effect of Each of the Transactions Below on Total

Question 121

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Show the effect of each of the transactions below on total assets and the current ratio by using one of the symbols in each box to complete the table.If the numerator and denominator of a ratio both increase or both decrease by the same amount,the effect of the event on the ratio is "O" or no effect.
 Effect  Symbol  Increase + Decrease  No effect N Insufficient Data O\begin{array}{ll} \underline {\text { Effect } }& \underline {\text { Symbol }} \\\text { Increase } &+ \\\text { Decrease } &- \\\text { No effect } &\mathrm{N}\\\text { Insufficient Data } &\mathrm{O}\end{array}  Effect on  Effect on the  Total Assets  Current Ratio  Cashreceived from customers for accountsreceivable balances dule  Cash sales of long term assetsfor an amount in excess of cost  Declaration and payment of cash dividends  Payment of interest expense  Purchase of long term assets for cash  Purchase of office supplies for cash \begin{array}{|l|l|l|}\hline & \text { Effect on } & \text { Effect on the } \\\hline & \text { Total Assets } & \text { Current Ratio } \\\hline \text { Cashreceived from customers for accountsreceivable balances dule } & & \\\hline \text { Cash sales of long term assetsfor an amount in excess of cost } & & \\\hline \text { Declaration and payment of cash dividends } & & \\\hline \text { Payment of interest expense } & & \\\hline \text { Purchase of long term assets for cash } & & \\\hline \text { Purchase of office supplies for cash } & & \\\hline\end{array}

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