Question 11 4 pts When a company buys equipment on account for $40,000: It debits the Equipment account for $40,000 and it credits Accounts Payable for $40,000. It debits Cash for $40,000 and it credits Accounts Payable for $40,000. It debits the Equipment account for $40,000 and it credits Cash for $40,000. D Question 12 4 pts When investors invest $120,000 in the company in exchange for ownership share in the company's stock, the company: It debits Accounts Payable and credits Retained Earnings. Debits Cash and credits Common Stock. Debits Common Stock and credits Cash Does nothing since no transaction really occurs. 4 pts Question 13 Think of the Buildings account. If the beginning balance in it was $300,000 and if there was a purchase of a building for $100,000 during the current accounting period, the balance at the end of the current accounting period will be: A $300,000 debit A $400,000 credit A $300,000 credit A $400,000 debit Question 14 4 pts "Expenses and dividends have the effect of increasing Retained Earnings and revenues have the effect of decreasing Retained Earnings." This statement is: False True It depends