Question

27. Performance of a service results in

Question 27 options:

	a credit to an asset and revenues
	a credit to an asset and a debit to revenues
	a debit to an asset and revenues
	a debit to an asset and a credit to revenues

28. Taking out a loan results in

Question 28 options:

	a credit to assets and a debit to liabilities
	a debit to assets and a credit to liabilities
	a credit to assets and liabilities
	a debit to assets and liabilities

29. Repayment of a loan results in

Question 29 options:

	a debit to an asset and to liabilities
	a credit to an asset and a debit to liabilities
	a debit to an asset and a credit to liabilities
	a credit to an asset and to liabilities

Answer 1

27.

Performance of a service results in "a debit to an asset and a credit to revenues".

This is because when service is performed revenue is earned and Cash or accounts recetable increase.

Hence last option is correct.

28.

Taking out a loan results in "a debit to assets and a credit to liabilities".

This is because taking a loan increase our liability and increase cash.

Hence second option is correct.

29.

Repayment of a loan results in "a credit to an asset and a debit to liabilities".

This is because repaying loan decrease our liability and decrease cash.

Hence second option is correct.