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Utilities Expense
Retained Earnings
Question 5.
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 6. 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