Examine the financial statements effects template below. Then select the answer that best describes the transaction. Transaction Cash Asset -120 + Noncash Assets 600 Balance Sheet Liabil Contrib. ities Capital 480 Income Statement Rev. Expen. enues Earned Capital Net Income ? Repay accounts payable of $120, net Record accounts receivable of $600 and cash collected of $120 Purchase inventory of $600 partly on account Purchase $600 of equipment on account QUESTION 22 All else equal, when investors consider a firm's return on equity (ROE) they consider loss risky a firm that earns proportionately more of that return from operating activities as opposed to nonoperating activities True False