The financial statements of Aritzia Inc. are shown in Appendix A at the back of this textbook. They contain the following selected accounts:

Instructions
a. Answer the following questions:

1. In which financial statement is each account included?

2. Is it an asset, liability, revenue, or expense?

3. What is the normal balance (debit or credit) for each of these accounts?

4. What are the increase side and decrease side (debit or credit) for each of these accounts?

b. Identify the probable other account(s) in the transaction, and the effect on that account(s), when:

1. Accounts payable and accrued expenses are decreased.

2. Long-term debt is increased.

3. Net revenues is increased.

4. Inventory is increased.

5. Prepaid expenses and other current assets are increased.

Transcribed Image Text:

Finance Expense Cash and Cash Equivalents Intangible Assets Inventory Long-Term Debt Prepaid Expenses and Other Current Assets Net Revenue Accounts Payable and Accrued Liabilities