During the Year, Millstone Company Earned $6,500 of Cash Revenue

question 67

Multiple Choice

During the year, Millstone Company earned $6,500 of cash revenue, paid cash dividends of $1,000 to stockholders and paid $4,000 for cash expenses. Liabilities were unchanged. Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

• A) Assets increased by $6,500.
• B) Assets increased by $1,500.
• C) Stockholders' equity increased by $2,500.
• D) Assets increased by $5,500.

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