Recognition of revenue may result in which of the following?
A) a decrease in a liability
B) an increase in a liability
C) an increase in assets
D) A and C

Question

Quizplus · Accepted Answer

Recognition of revenue can result in a decrease in a liability (if the revenue is related to a previously recognized liability) and an increase in assets (if the revenue is related to a sale of goods or services). Therefore, option D (A and C) is the correct answer.

Recognition of Revenue May Result in Which of the Following