Stannous Company earns $2,000 of revenue on account in Year 1. Cash collections of receivables amount to $1,800 in Year 1 with the remainder being collected in Year 2. Which of the following shows how these events will affect the company's financial statement accounts when the remaining cash is collected in Year 2? A. B. C. D. Assets + NA ΝΑ Balance sheet O = Liabilities + Equity NA + + NA + NA + NA Multiple Choice Option A Option B Option C Option D NA NA - Rev. + NA NA Income Statement -Exp. = Net Inc. NA NA NA NA = + NA NA Statement of Cash Flows + OA + OA ΝΑ + OA
Stannous Company earns $2,000 of revenue on account in Year 1. Cash collections of receivables amount to $1,800 in Year 1 with the remainder being collected in Year 2. Which of the following shows how these events will affect the company's financial statement accounts when the remaining cash is collected in Year 2? A. B. C. D. Assets + NA ΝΑ Balance sheet O = Liabilities + Equity NA + + NA + NA + NA Multiple Choice Option A Option B Option C Option D NA NA - Rev. + NA NA Income Statement -Exp. = Net Inc. NA NA NA NA = + NA NA Statement of Cash Flows + OA + OA ΝΑ + OA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer correctly and explain in detail the correct option please explain step by step
Transcribed Image Text:Stannous Company earns $2,000 of revenue on account in Year 1. Cash collections of receivables amount to $1,800 in Year 1 with the remainder being collected in Year 2. Which of the following shows how these
events will affect the company's financial statement accounts when the remaining cash is collected in Year 2?
A.
B.
C.
D.
Assets = Liabilities +
ΝΑ
+
+
+
+
+
ΝΑ
ΝΑ
O
Balance sheet
●
O
=
=
Multiple Choice
=
=
Option A
Option B
Option C
Option D
ΝΑ
ΝΑ
ΝΑ
Equity
+
ΝΑ
ΝΑ
Rev.
+
ΝΑ
NA
Income Statement
Exp. Net Inc.
ΝΑ
=
NA
NA =
ΝΑ
=
+
ΝΑ
ΝΑ
Statement of
Cash Flows
+OA
+OA
ΝΑ
+OA
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