Which of the following financial statements reports an increase or decrease in net cash during the time period covered? statement of owner's equity 40. A. B. C. D. income statement statement of cash flows balance sheet 41. A liability is paid with cash. How does paying this liability affect the accounting equation? A. 42. 12 Assets increase; liabilities decrease B. Assets decrease; liabilities decrease C. D. Assets increase; liabilities increase Liabilities decrease; owner's equity increases Which of the following concepts (principles) would be most likely to require that an item be recorded at the amount actually paid? cost principle reliability concept A. B. going concern concept C. entity concept D. 43. A. B. C. Financial statements Accounting information may be generated for a variety of purposes. The key product(s) of accounting is (are) which of the following documents? Workpapers Remittance advices 44. D. Spreadsheets A business purchases equipment for cash of RM8,000. Which of the following occurs? A. B. C. D. Cash is credited for RM8,000. Cash is debited for RM8,000. Equipment is debited for RM8,000. Both A and C.