For each of the transactions below, record whether it would result in an increase or decrease in
Question:
For each of the transactions below, record whether it would result in an increase or decrease in assets, liabilities, and/or net assets. An organization:
1. Earns revenue.
2. Receives a donor pledge.
3. Purchases supplies with cash.
4. Purchases supplies on account.
5. Takes out a loan.
6. Repays loan principal.
7. Receives payment on a pledge.
8. Makes a payment on an amount it owes.
9. Prepays for insurance.
10. Uses prepaid insurance.
11. Uses supplies.
12. Uses a capital asset.
13. Receives cash in advance of providing goods or services to a client.
14. Provides goods and services to a client in exchange for a cash payment that was made in advance.
15. Employs workers who earn wages.
16. Pays employee wages that have been earned.
17. Deems a portion of a pledge is uncollectible.
18. Pays interest on a loan.
Step by Step Answer:
Financial Management for Public, Health and Not-for-Profit Organizations
ISBN: 978-1506326849
5th edition
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell