During 2016,Millstone Company earned $6,500 of cash revenue,paid cash dividends of $1,000 to owners and paid $4,000 for cash expenses.Liabilities were unchanged.Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

Question

Quizplus · Accepted Answer

The net increase in assets is the cash revenue ($6,500) minus the cash expenses ($4,000) and cash dividends ($1,000), resulting in an increase of $1,500.

During 2016,Millstone Company Earned $6,500 of Cash Revenue,paid Cash Dividends