During 2016,Millstone Company Earned $6,500 of Cash Revenue,paid Cash Dividends

Multiple Choice

During 2016,Millstone Company earned $6,500 of cash revenue,paid cash dividends of $1,000 to owners and paid $4,000 for cash expenses.Liabilities were unchanged.Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

A) Assets increased by $6,500.
B) Assets increased by $1,500.
C) Equity increased by $2,500.
D) Assets increased by $5,500.