GB 518 RANK Keep Learning /gb518rank.com GB 518 RANK Keep Learning /gb518rank.com | Page 43

$200,000 Question 10. Question : A credit is used to record: An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings Question 11. Question : Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: Assets increase by $75,000 and expenses increase by $75,000 Assets increase by $75,000 and expenses decrease by $75,000 Liabilities increase by $75,000 and expenses decrease by $75,000