Multiple Choice
Magic,Inc.collected $24,000 in October 2011 from customers in exchange for 12-month subscriptions to its monthly magazine Magic Times.The October issue was the first issue of the subscription.Which statement below is true regarding the effects of collecting the cash from customers in October?
A) Assets and liabilities will increase by $24,000.
B) Assets will increase and shareholders' equity will decrease by $24,000.
C) Liabilities and shareholders' equity will increase by $24,000.
D) Assets and shareholders' equity will increase by $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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