Which accounts are affected, and in which direction, when a company records depreciation on its equipment? a) Equipment decreases and equipment expense increases. b) There is no entry until the equipment is sold. Oc) Equipment expense and accumulated depreciation both increase. d) Depreciation expense and accumulated depreciation both decrease. e) Depreciation expense and accumulated depreciation both increase. Which accounts are affected, and in which direction, when a company purchases a machine for cash? a) Equipment and bank loan payable both increase. b) Depreciable amount increases and cash decreases. c) Equipment expense increases and cash decreases. d) Equipment expense and bank loan payable both increase. e) Equipment increases and cash decreases. Which accounts are affected, and in which direction, when a company disposes of a piece of equipment for cash, where the amount of cash received is less than the book value of the equipment? a) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases loss on disposal. b) Equipment and accumulated depreciation both decrease, cash increases, and the difference decreases retained earnings. Oc) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases disposal expense. d) Cash and depreciation expense both increase, and equipment decreases. e) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases depreciation expense. Which accounts are affected, and in which direction, when a company disposes of a piece of equipment for cash, where the amount of cash received is greater than the book value of the equipment? a) Cash and sales revenue both increase, and equipment and depreciation expense both decrease. b) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases sales revenue. Oc) Equipment and accumulated depreciation both decrease, cash increases, and the difference decreases depreciation expense. d) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases gain on disposal. e) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases retained earnings. In the following situation, who owns the inventory while it is in transit? You, the seller, sold inventory with shipping terms FOB destination. The inventory cost $4,680. 1) both the seller and the buyer 2) the buyer 3) neither the seller nor the buyer 4) the seller