U Question 26 4 pts Fred's Auto Body purchased equipment costing $100,000. Of this amount, $40,000 was paid in cash and the balance is due in six months. Recording this transaction would have what effect on the firm's financial statements? O total assets would increase $60,000 O total assets would increase $100,000 total liabilities would increase $40,000 O expenses would increase by $40,000 O none of the above 4 pts D Question 27 Revenues and expenses have what effect on the basic accounting equation of Assets = Liabilities + Owners' Equity? revenues and expenses are not related to the equation O the differences between revenues and expenses increases liabilities O revenues increase owners' equity while expenses decrease owners' equity revenues increase owners' equity while expenses increase liabilities O none of the above