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1}Define debits and credits and explain how they are used to record business transactions. Is it true that debits always increase and credits always decrease? Why or why not?
2.} Review the section called “Investor Insight” in Chapter 3 (pg.115) of your text which shows the major revenue and expense accounts of the Chicago Cubs baseball team. Considering the huge increase in professional baseball players’ salaries in the last decade, what do you think has happened to total expenses and net income of professional baseball teams? If net income has not decreased, what has been done to offset the higher salaries? Should fans be expected to pay higher prices for ‘America’s national pastime’ to help offset the costs of higher salaries?
