Author Question: Magic, Inc collected 24,000 in October 2011 from customers in exchange for 12-month subscriptions to ... (Read 49 times)

vinney12 · **on:** Jul 5, 2018

Magic, Inc collected 24,000 in October 2011 from customers in exchange for 12-month subscriptions to its monthly magazine Magic Times. The October issue was the first issue of the subscription.

Which statement below is true regarding the effects of collecting the cash from customers in October?
A) Assets and liabilities will increase by 24,000.
B) Assets will increase and shareholders' equity will decrease by 24,000.
C) Liabilities and shareholders' equity will increase by 24,000.
D) Assets and shareholders' equity will increase by 2,000.

Question 2

Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary.
a. True
b. False
Indicate whether the statement is true or false