Problem: Many of the transactions affect more than one financial statement. What are five transactions that for example can specify different information that is conveyed within financial statements.
Suppose Aunt Connie is getting ready to visit her banker seeking a loan to expand her business. She wants to demonstrate the strength of her business on her income statement. If she has firm orders for $100,000 worth of cookies for delivery in the next six months, can she show this as revenue on her income statement? Why or why not?
Identify the optimal answers for the simulation and explain why you chose them.