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The grid below is a list of possible effects on the Income Statement and the Balance Sheet. The code is: + = increase; -- =
The grid below is a list of possible effects on the Income Statement and the Balance Sheet. The code is: + = increase; -- = decrease; NE = no effect. Liabilities Revenue/Gain Net Income Expense/Loss Assets --15 Equity --15 +15 --15 NE NE a. NE --10 --10 b NE --10 +10 +25 C NE --25 --25 NE --25 d NE NE NE NE NE NE NE NE e. NE +90 +90 NE Match the ettect that the transaction below has on a company's Income Statement and Balance Sheet. Choose (a), (b), (c), (d), or (e) from the grid above. For example, if the transaction is "Collected cash on accounts receivable, the correct answer is (d) because there is no effect on revenue, expense, net income, overall assets, liabilities, or equity. Transaction Recorded an impairment loss on a group of assets. The assets had a book value of $100; a fair market value of $75, and total expected future net cash inflows (undiscounted) of $90. Oa Ob oc Od
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