Tiny Town Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized as a sole proprietorship and owned by Earle Martin . During the past​ month, Tiny Town Kennel has the following​ transactions: LOADING... ​(Click the icon to view the​ transactions.) Indicate the effects of the business transactions on the accounting equation for Tiny Town Kennel. Transaction​ (a) is answered as a guide. a. Received $ 520 cash for service revenue earned.​ (Transaction (a) is answered as a​ guide.) a. Increase asset (Cash) ; Increase equity (Service Revenue) b. Paid $ 325 cash for salaries expense.

Paid $325 cash for salaries expense ⇒ Decrease asset (Cash); Decrease in Equity (Expenses)

Assets are reduced because the money used to pay for the salaries came from cash and cash is an asset. Assets will therefore be credited.

Equity also reduces because expenses come out operating income which is part of Equity. Equity will be debited as it is debited when it decreases.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

d, rjskdndjsndbdnsjdbxbc