A Company Sells Magazines and Collects Subscription Fees Prior to the Publication

A company sells magazines and collects subscription fees prior to the publication and distribution of the magazine.Which of the following correctly describes the impact on the financial statements when cash is received in advance from customers?

A) Current assets increase and gross profit increases.
B) Current liabilities aren't affected and stockholders' equity isn't affected.
C) Current assets increase and stockholders' equity increases.
D) Current liabilities increase and gross profit is not affected.