The following accounts and balances were drawn from the records of Hoover company on December 31, 2011: Total assets on the December 31, 2011 balance sheet would amount to; $3, 150. $3, 450. $1, 800. $2, 650. The purpose of the accrual basis of accounting is to: Report revenue when received. Improve the matching of revenue and expense in the proper period. Report expenses when cash disbursements are made. Improve the company's earnings per share. Which of the following is decreased with a debit? Accounts Payable Accounts Receivable Prepaid Rent Rent Expense Which of the following is decreased with a credit? Unearned Service Revenue Consulting Revenue Accounts Payable Prepaid Rent Indicate whether each of the following statements is true or false. A debit may increase a liability. A credit may increase Retained Earnings. A debit may decrease equity. A credit may decrease an asset. Debits to the cash account are reported as cash outflows on the statement of cash flows. Indicate whether each of the following statements is true or false The general journal is often called the book of original entry. Transactions are first recorded in the ledger and then transferred to the journal. The process of making entries into a journal is called posting. The ledger is an example of a source document. The list of a business's account titles and account numbers is called a chart of accounts