21. Pedigree Music, Inc, a jazz group, entertained at a black-tie dinner dance on April 26, and collected the fee in full at the end of the evening. This transaction: A) Causes an increase in assets and revenue, as well as an increase in owners' equity. B) Is recorded by debiting Cash and crediting the Retained Earnings account. C) Causes an increase in assets and a decrease in owners' equity. D) Violates the matching principle unless any expenses associated with this cash receipt are paid prior to recording the revenue. 22. Liquidity may be defined as: The ability to increase the value of retained earnings The ability to pay the debts of the company as they fall due. Being able to buy everything the company requires for cash. Purchasing everything the company requires on credit. A) B) C) D) 23. Profitability may be defined as: A) The ability to pay the debts of the company as they fall due. B) The ability to increase the value of retained earnings. C) Distributing dividends D) Having excess cash