Which of the following statements about the relationship between the transactions on the Income Statement and Balance Sheet are TRUE: You buy a $100 item of clothing on your debit card and you treat the clothing as an expense (not an asset). The immediate impact of this transaction at the time of purchase involves incurring an expense of $100, a decrease in profit of $100, a decrease in assets of $100 and a decrease in wealth of $100. You receive $100 in interest on a savings account. The immediate impact of this transaction to the time of receiving the interest is an income of $100, an increase in profit of $100, an increase in assets of $100 and an increase in wealth of $100. Question 8Answer Neither of the statements are true (both are false) Only statement 1 is true Only statement 2 is true Both statements are true (neither are false)