1. when equipment is purchased on credit

A. Both assets and liabilities increase

b. Both assess and liabilities decrease

C. One asset increases and another asset decreases

d. Both assets and owners equity increase

2. The month and balance of the deferred revenue account

a. Appears in the income statement along with other revenue accounts

b. appears as a reduction on the statement of owners equity

c. appears in the balance sheet as a component of owners equity

d. appears in the liability section of the balance sheet

3. The expenses for a period are reported on both the income statement and the balance sheet

true or false?