1. On 30 April 2021, a customer agreed to purchase 500 additional goods that was originally sold at RM5 each if the business agrees to give a 20% discount. After a long negotiation, the business agrees to the customers demands. The amount of discount given was ___ and will ___.

a.$500, not be recorded

b.$500, increase the expenses

c.$200, decrease the revenue

d.$200, decrease the assets

Choco Delights runs a factory that produces chocolate milk. The business uses perpetual inventory system to record inventory movements. A cash purchase of inventories from Coco Farm will result in the following effect to the accounting equation:

a.

The amount of assets does not change

b.

Decrease in assets and liabilities

c.

Increase in expenses and decrease in assets

d.

Increase in assets and equity