Answer to Question #245163 in Accounting for Another you

Question

A. Choose the letter that corresponds to the correct answer. (Determine the effect of the following transactions on Cash)

1. An increase in the balance of Prepaid Advertising

a. Positive c. No effect

b. Negative d. Adverse Effect

2. A decrease in taxes payable

a. Positive c. No effect

b. Negative d. Adverse effect

3. Initial investment by the owner

a. Positive c. No effect

b. Negative d. Adverse effect

4. Purchase of office equipment

a. Positive c. No effect

b. Negative d. Adverse effect

Answer 1

1.b. Negative

2.a. Positive

3.d. Adverse effect

4.c. No effect