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

Question

Quizplus · Accepted Answer

The distribution of the monthly issue increases revenues because the publisher receives payment for the subscriptions. It also increases assets because the publisher now has the inventory of magazines on hand.

A Magazine Publisher Sells Annual Subscriptions