An expense should be recorded when:

A. the bill is paid.
B. a bill is received in the mail.
C. cash is sufficient to pay the bill.
D. when the expense is incurred .

The financial statement that shows business results in terms of revenue and expenses is:

A. an income statement.

B. a balance sheet.

C. a statement of owner's equity.

D. the statement of cash flows.

James purchased a new computer for the company on account. The transaction will:

A. increase Computer; increase Capital.
B. decrease Cash; increase Accounts Payable.
C. decrease Cash; increase Computer.
D. increase Computer; increase Accounts Payable.