Which of the Following Statements Best Describes the Effects of Recognizing

question 174

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) Shareholders' equity increases only when credit sales are made.
• C) Assets and shareholders' equity increase when either cash or credit sales are made.
• D) Assets increase and shareholders' equity decrease when either cash or credit sales are made.

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Definitions:

Pre-eclampsia

In pregnancy, a complication arises with high blood pressure and manifestations of damage to other organ systems, with the liver and kidneys being commonly affected.

Diethylstilbestrol

Diethylstilbestrol (DES) is a synthetic form of estrogen that was once prescribed to prevent miscarriages, but was later found to cause cancer and other serious reproductive problems.

Teratogens

Agents or factors that cause malformation of an embryo or fetus, including certain drugs, infections, and chemicals.

Blastocyst

A structure formed in the early development of mammals, consisting of a cellular shell that encloses a cavity and a cluster of cells from which the embryo develops.