QUESTION 36 If supplies that have been purchased are used in the course of business, then a liability will increase an asset will increase. Stockholders' equity will decrease. Stockholders' equity will increase. QUESTION 37 Relevant accounting information is information that has been audited. must be reported within the operating cycle or one year, whichever is longer. has been objectively determined. is information that is capable of making a difference in a decision. Question Completion Status: QUESTION 38 The accounting equation for Juan's Colombian Restaurant is as follows: Assets Liabilities Stockholders' Equity $500,000 = $200,000 $300,000 If Juan's purchases kitchen equipment on account for $20,000, the accounting equation will change to: Assets Liabilities Stockholders' Equity 1. $520,000 - $220,000 $300,000 2. $480,000 - $180,000+ $300,000 3. $500,000 - $220,000+ $280,000 4. $480,000 = $200,000 + $280,000 1 2 3 2.5 poin QUESTION 39 Net income results when Assets > Liabilities. Revenues - Expenses Revenues > Expenses. Revenues