A magazine publisher sells annual subscriptions.The distribution of the monthly issue affects the firm by increasing_____.
A)liabilities and increasing assets
B)assets and increasing revenues
C)revenues and decreasing liabilities
D)liabilities and decreasing revenues

Question

Quizplus · Accepted Answer

When the magazine issues are distributed, the company recognizes the revenue from the subscription, which decreases the liability (unearned revenue) as the service is provided.

A Magazine Publisher Sells Annual Subscriptions