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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
Assets decrease by $75,000 and expenses
decrease by $75,000
Assets increase by $75,000 and liabilities
increase by $75,000
Question 12. Question :
The principle that (1) requires
revenue to be recognized at the time it is earned, (2) allows the
inflow of assets associated with revenue to be in a form other
than cash and (3) measures the amount of revenue as the cash