13. Purchase of an Asset on Account 14. Investment by Owner ALE A L + E Q-1. Use the lettered descriptions below to describe the effects on the financial position of a business of the above transactions: (a) Increase assets, increase liabilities (b) Increase assets, increase equity (c) Decrease assets, decrease liabilities (d) Increase equity, decrease liabilities (e) Decrease assets, decrease equity (f) Increase assets, decrease assets (g) Increase liabilities, decrease equity Q-2. Use the lettered descriptions below to describe the journal entries that would be used to record the above transactions: (a) debit an equity account, credit a liability account (b) debit an asset account, credit an asset account (c) debit a liability account, credit an asset account (d) debit an asset account, credit an equity account (e) debit an asset account, credit a liability account (f) debit an equity account, credit an asset account (g) debit a liability account, credit an equity account Q-3. An awareness of the normal balances of accounts would help you spot which of the following as indicating possible recording errors? (a) a debit balance in Inventory (b) a credit balance in Rent Revenue (c) a credit balance in Accumulated Amortization (d) a debit balance in Unearned Revenue. Q-4. Under accrual accounting, Revenue is recorded when principle. Expenses are recorded when principle. Problem 2. according to the according to the