If a company receives $12,000 from its sole stockholder to establish a corporation, the effect on the accounting equation would be:

Horizontal analysis:

Transactions are recorded first in the ledger and then transferred to the journal.

When no value is in the base period, no percent change is computable.

If a company receives $12,000 from its sole stockholder to establish a corporation, the effect on the accounting equation would be:

The reporting of investing activities in the statement of cash flows is identical under either the direct or indirect methods.

Net sales divided by Average accounts receivable, net is the:

Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:

Financing activities include receiving cash dividends from investments in other companies’ stocks.

When a negative amount is in the base period and a positive amount is in the analysis period (or vice versa), a meaningful percent change cannot be calculated.