Forest Beach Company experienced an event that had the following effects on its financial statements. Balance sheet
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Question:
Forest Beach Company experienced an event that had the following effects on its financial statements.
| Balance sheet | Income Statement | Statement of Cash Flows | ||||||||
| Assets | = | Liab. | + | Equity | Rev. | − | Exp. | = | Net Inc. | |
| NA | = | NA | + | NA | NA | − | NA | = | NA | + IA |
Which of the following events could have caused these effects?
Multiple Choice
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Accrued interest revenue.
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Loaned cash to an employee.
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Collected cash for the principal balance of a note receivable.
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Borrowed cash from a bank.
Expert Answer:
The correct answer is C When cash is collected for a principal balance of a note receivable one asse... View the full answer
Related Book For 
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date:
