Regarding the Relationships of Revenues and Expenses to Assets and Liabilities

question 13

Short Answer

Regarding the relationships of revenues and expenses to assets and liabilities, state whether each of the following statements is true or false.
_____ a) Recording an increase in a revenue account may be associated with an increase in assets.
_____ b) Recording an increase in a revenue account may be associated with a decrease in liabilities.
_____ c) An increase in Salaries Expense may be accompanied by a decrease in Salaries Payable.
_____ d) Recording a decrease in assets may be associated with an increase in an expense account.
_____ e) An increase in Supplies may be accompanied by an increase in Supplies Expense.

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Definitions:

Distress

An emotional state of extreme discomfort, sadness, or pain, or a legal term referring to the seizure of property to compel payment or compliance.

Distrain

The act of seizing someone's property in order to compel payment of rent or to enforce a legal judgment.

Lessee

A tenant.

Re-entry

The act of a landlord to move into possession of leased property.