Match each transaction with the most likely effect it has on Retained Earnings.Received interest on a savings account - not previously accrued.А.IncreasePaid postage to ship a package.В.No effectV Received payment from a customer on account.C.DecreaseRecorded a loss on sale of plant assets.Recorded an internally-developed patent.v Sold merchandise on account.Paid cash dividends.

Name: Match each transaction with the most likely effect it has on Retained
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Description: Match each transaction with the most likely effect it has on Retained Earnings.Received interest on a savings account - not previously accrued.А.IncreasePaid postage to ship a package.В.No effectV Received payment from a customer on account.C.Decrea

The portion of the net income which is to be kept or retained by the entity after payment of the…

Business

Accounting

Match each transaction with the most likely effect it has on Retained Earnings. Received interest on a savings account - not previously accrued. A. Increase Paid postage to ship a package. B. No effect Received payment from a customer on account. C. Decrease Recorded a loss on sale of plant assets. Recorded an internally-developed patent. Sold merchandise on account. v Paid cash dividends.

Match each transaction with the most likely effect it has on Retained Earnings. Received interest on a savings account - not previously accrued. A. Increase Paid postage to ship a package. B. No effect Received payment from a customer on account. C. Decrease Recorded a loss on sale of plant assets. Recorded an internally-developed patent. Sold merchandise on account. v Paid cash dividends.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Match each transaction with the most likely effect it has on Retained Earnings.
Received interest on a savings account - not previously accrued.
А.
Increase
Paid postage to ship a package.
В.
No effect
V Received payment from a customer on account.
C.
Decrease
Recorded a loss on sale of plant assets.
Recorded an internally-developed patent.
v Sold merchandise on account.
Paid cash dividends.

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