Problem: If expenses exceed revenue during a given accounting period: a. Assets will decrease more than liabilities. b. Owners' equity will decrease more than assets. c. The cash account will decrease. d. The income statement will show a net loss.

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Problem Details

If expenses exceed revenue during a given accounting period:

a. Assets will decrease more than liabilities.

b. Owners' equity will decrease more than assets.

c. The cash account will decrease.

d. The income statement will show a net loss.

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Based on our data, we think this problem is relevant for Professor Li's class at UMN.