Which of the Following Statements Best Describes the Effects of Recognizing

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.