A friend of yours in this accounting class is confused and says: “| just don’t understand revenues and expenses. | learned earlier in this chapter that assets are increased by entries on the left side of the T-accounts and liabilities are increased by entries on the right side. Then | read later that expenses are increased by entries on the left side of the T-accounts and revenues are increased by entries on the right side. So the way | look at it, expenses must be assets, and revenues must be liabilities. And if that isn’t confusing enough, my teacher says that not all increases in assets are the result of revenues and not all decreases in assets result in expenses. Wow! Does this make sense to you?”

Required: Prepare a written explanation for each issue raised by your friend. Use examples where needed.  lop74