4. r@ktas company paid $7,000 cash to the supplier. As a result of this transaction, a. assets would increase by $ 7,000 c. expense would increase by 7,000 b. revenue would increase by 7,000 d. liabilities would decrease by $ 7,000 5. Which of the following financial statement elements is found on balance sheet? a. Sales revenue b. Rent expense c. Retained earnings d. Foreign exchange loss 6. Assume that r@ktas Inc., sold inventory on account for $2,000. How would this transaction affect r@ktas' accounting equation? a. Increase both assets and liabilities by $2,000. b. Increase both assets and shareholders' equity by $2,000. c. Increase both liabilities and shareholders' equity by $ 2,000. d. Increase shareholders' equity $ 72,000. 7. Which of the following accounts is an liability?