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.