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.

---

Definitions:

Court Of Equity

A court that resolves disputes by applying principles of fairness and justice, often in cases where traditional legal remedies are inadequate.

Segregating

The act of separating or setting apart from others or from the main body or group.

Implied Authority

Power not explicitly granted by a principal to an agent but deemed necessary to carry out expressly authorized duties.

Enforce Claims

The act of legally pursuing or demanding rights or commitments that have been agreed upon or are owed.