Rialto Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Rialto's statements?
A)Paid a cash dividend.
B)Earned cash revenue.
C)Borrowed money from a bank.
D)None of these.

Question

Rialto Company experienced an accounting event that affected its financial statements as indicated below:  Which of the following accounting events could have caused these effects on Rialto's statements?
A)Paid a cash dividend. 
B)Earned cash revenue. 
C)Borrowed money from a bank. 
D)None of these.

Quizplus · Accepted Answer

Earning cash revenue must have been the event that affected the financial statements as indicated because it increase revenue and net income on the income statement and was reported as a cash inflow for operating activities on the statement of cash flows.

Rialto Company Experienced an Accounting Event That Affected Its Financial