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.
Correct Answer:
Verified
Correct Answer:
Verified
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