Which of the Following Statements Best Describes the Effects of Recognizing

question 110

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 made.
• 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,but stockholders' equity decreases,when either cash or credit sales are made.

---

Definitions:

Phenotype

Phenotype is the set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Molecule

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

RNA

Ribonucleic acid, a nucleic acid present in all living cells. Its principal role is to act as a messenger carrying instructions from DNA for controlling the synthesis of proteins.