Which of the Following Statements Best Describes the Effects of Recognizing

question 87

Multiple Choice

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

• A)Assets increase only when cash sales are collected.
• B)Stockholders' equity increases only when credit sales are made.
• C)Assets and stockholders' equity increase when either cash or credit sales are made.
• D)Assets increase and stockholders' equity decreases when either cash or credit sales are made.

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Definitions:

Thigmotropism

Plant growth in response to contact with a solid object, such as the twining of plant tendrils.

Mechanical Stimuli

Physical forces that influence biological processes in organisms, such as pressure, stretch, and flow.

Phototropism

The orientation of a plant or other organism in response to light, typically towards the source of light.

Light

A form of electromagnetic radiation that is visible to the human eye and is responsible for the sense of sight.