单选题 When a firm recognizes revenue in excess of expenses on a product not covered by a warranty before cash is collected, what is the impact on the firm's assets and liabilities, ignoring taxes? Assets Liabilities ①A. Increase Increase ②B. Increase No effect ③C. No effect No effect

A、

A. ①
B、

B. ②
C、

C.③

【正确答案】 B

【答案解析】When a firm recognizes revenue before cash is collected, equity increases (retained earnings ) and assets increase(accounts receivable). Liabilities would not be affected.