triciapiedra asked:


I have a few college accounting questions:
1. The income statement presents a summary of an entity’s ASSETS and LIABILITIES over a period of time? TRUE OR FALSE
2. Which of the following transactions would not affect LIABILITIES?
a. owner investment of cash into the business
b. payment made to a creditor
c. purchase of supplies on account
d. purchase of equipment by making a cash down payment and issuing a note.
3. Performing a service for cash would:
a. decrease expenses more than if the service had been performed on account
b. increase assets more than if the service had been performed on account
c. increase net income less than if the service had been performed on account
d. affect the accounting equation the same as if the service was performed on account
4. When revenue is recorded, the asset account cash is always increased along with owner’s equity? True or False

Thanks in advance