your banker confides to you after looking at a number of financial statements that s 536452

EFFECT OF TRANSACTION/EVENT ON:

Net Income

Cash from Operations

1. Sales of marketable securities for cash at more than their carrying value.

2. Sale of merchandise with deferred payments

(one-half within one year and one-half after one year).

3. Reclassify noncurrent receivable as current receivable.

4. Payment of current portion of long-term debt.

5. Collection of an account receivable.

6. Recording the cost of goods sold.

7. Purchase of inventories on account (credit terms).

8. Accrual of sales commissions (to be paid at a later date).

9. Payment of accounts payable (resulting from purchase of

inventory).

10. Provision for depreciation on a sales office.

11. Borrowing cash from a bank on a 90-day note payable.

12. Accrual of interest on a bank loan.

13. Sale of partially depreciated equipment for cash at less than

its

Book value.

14. Flood damage to merchandise inventories (no insurance

coverage).

15. Declaration and payment of a cash dividend on preferred stock.

16. Sale of merchandise on 90-day credit terms.

17. Provision for uncollectible accounts receivable.

18. Write-off of an uncollectible receivable.

19. Provision for income tax expense (to be paid the following

month).

20. Provision for deferred income taxes (set up because

depreciation

for tax reporting exceeded depreciation for financial reporting).

21. Purchase of a machine (fixed asset) for cash.

22. Payment of accrued salary expense to employees.