Question 5:Proficient-level:Many accounting transactions will apply to one or more of the financial.

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Question 5:Proficient-level:Many accounting transactions will apply to one or more of the financial statements. In the case of the balance sheet, multiple account types can be affected. For each of the following items, provide an example of a transaction that would have the following effects on the items in a firm’s financial statements. Provide five correct responses:Increase an asset; decrease some other asset.Increase an asset; increase a liability.Decrease retained earnings; decrease an asset.Increase an asset; increase retained earnings.Decrease an asset; decrease a liability.Increase a liability; decrease retained earnings.Distinguished-level:Correctly provide an example for all of the effects on the items in a firm’s financial statements.

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