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. ①
  • B. ②
  • 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.