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Dover Company Experienced an Accounting Event That Affected Its Financial

Question 5

Multiple Choice

Dover Company experienced an accounting event that affected its financial statements as indicated below:  Assets = Liab.  NA + Equity  Rev  NA  Exp += Net  Inc.  Cash  Flow -OA \begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Assets } \\-\end{array} & = & \begin{array} { c } \text { Liab. } \\\text { NA }\end{array} & + & \text { Equity } & \begin{array} { c } \text { Rev } \\\text { NA }\end{array} & - & \begin{array} { c } \text { Exp } \\+\end{array} & = & \begin{array} { c } \text { Net } \\\text { Inc. } \\-\end{array} & \begin{array} { c } \text { Cash } \\\text { Flow } \\\text {-OA }\end{array} \\\hline\end{array} Which of the following accounting events could have caused these effects on Dover's statements?


A) Paid a cash dividend.
B) Earned cash revenue.
C) Borrowed money from a bank.
D) Incurred a cash expense.

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