
Concept explainers
Identify the transaction that does not affect the

Answer to Problem 1SSQ
Option d is the correct answer.
Explanation of Solution
Balance sheet:
Balance is the financial statement that reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
Option a:
The assets side of the balance sheet is affected by the purchase of supplies. Therefore, it is an incorrect option.
Option b:
Both of the asset side and liabilities side is affected by the payment made for notes payable. Therefore, it is an incorrect option.
Option c:
The asset side of the balance sheet is affected while receiving cash from the bank. Therefore, it is an incorrect option.
Option d:
The balance sheet totals are not affected by the order of machine. Therefore, it is the correct option.
Hence, from the above explanation, option d is the correct answer.
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Chapter 2 Solutions
Financial Accounting for Undergraduates
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