QUESTION 7 Economic inflows to a firm that result from selling goods and services are called O a. net income. O b. assets. O c. revenues. O d. common stock. QUESTION 8 A transaction causes a company's cash balance to increase. Which of the following could also be true for that transaction? Another asset decreases or a liability increases. Another asset also increases or a liability decreases. Another asset decreases or owners' equity decreases. o A liability decreases or owners' equity increases. QUESTION 9 Howard Company had a transaction that caused a $5,000 increase in both total assets and total liabilities. Which of the following is a potentially valid description of this transaction? o a. purchase of office equipment for $5,000 cash. o b. purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance of $5,000. o c. investment of $5,000 cash in the business by the stockholders. o d. repayment of a $5,000 bank loan