Problem: Using the words increase (inc), decrease (decr), or no effect (ne), indicate how each of the following adjustments affects a company's accounting equation. Note: "no effect" must be indicated where appropriate.
Adjustments for accrued revenues:
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Total Assets
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Total Liabilities
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Total Stockholders' Equity
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- Adjustments for unearned revenues:
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Total Assets
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Total Liabilities
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Total Stockholders' Equity
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- Adjustments for accrued expenses:
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Total Assets
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Total Liabilities
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Total Stockholders' Equity
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- Adjustments for prepaid expenses:
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Total Assets
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Total Liabilities
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Total Stockholders' Equity
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Accounting Check √ Do each of your answers keep the accounting equation in balance? If your answer is not "yes", please go back and check your work.