Problem 1: An entry for depreciation has what effect on the financial statements:
a) increases assets and decreases liabilities.
b) decreases net income and increases assets.
c) increases expenses and decreases assets
d) decreeases assets and increases liabilities
Problem 2: The primary difference between deferred and accrued expenses is that accrued expenses :
a) have been paid but deferred expenses havn't
b) have not been paid but deffered expenses have
c) involve assets instead of liabilites