Answer the following Questions (Please, show your work; 01): Circle the best answer of the following statements/questions (10 M 1. A buyer would record a payment within the discount period under inventory system by crediting a. Accounts Payable. b. Merchandise Inventory. c. Purchase Discounts. d. Sales Discounts. 2. A statement of financial position shows a. revenues, liabilities, and equity. b. expenses, dividends and equity. C. revenues, expenses, and dividends. d. assets, liabilities, and equity. 3. Depreciation expense for a period is computed by taking the a. original cost of an asset - accumulated depreciation. b. depreciable cost + depreciation rate. C. cost of the asset - useful life. d. market value of the asset + useful life. 4. Which of the following statements is true? a. Debits increase assets and increase liabilities. b. Credits decrease assets and decrease liabilities. C. Credits decrease assets and increase liabilities. d. Debits decrease liabilities and decrease assets