Hi! each question below has answer (Bold). Could you please explain me why those are the answers and why the others (each) are wrong? I am preparing for my final and just want to make sure I really understand why and why not of each of them. Thanks.

2) Rico Inc. issues a 90-day, 4%, $3,000 note on account. This transaction a) increases net assets and earnings per share of the company b) decreases net assets and increases earnings per share of the company *c) has no effect on net assets and earnings per share of the company d) decreases net assets and earnings per share of the company 3) As interest is recorded on an interest-bearing note, the Interest Expense account is a) decreased; the Interest Payable account is increased. *b) increased; the Interest Payable account is increased. c) increased; the Notes Payable account is decreased. d) increased; the Notes Payable account is increased