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    Desa Cornelio's Avatar
    Desa Cornelio Posts: 1, Reputation: 1
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    #1

    Aug 24, 2015, 07:54 AM
    Effect of events on financial statement
    How to process this kind of problem ,WHat to do of this one
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Aug 24, 2015, 11:03 AM
    You have to think about the event. Are you receiving money for selling a product, are you spending money for an expense , are you receiving products that you ordered. You need to think about the event and how it would be journalized, then you have to think how the journal entries will affect the financial statements. If you receive money for selling something this will increase net income, increase assets, and increase equity.

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