iz Sever Help Save & Eat Star Company recogni. $500 of cost of goods sold. Note that Star is only recording the cost of goods sold part of the transaction and not the sales revenue. Star uses the perpetual Inventory system. Which of the following answers reflects the effect of recognizing the cost of goods sold on the financial statements? Income Statement A. B. C. D. Assets 500 (500) (500) (500) Balance Sheet Stockholders Liabilities Equity 500 (500) (500) n/a (500) Statement of C n/a Revenue n/a n/a n/a n/a Expense 500 500 500 n/a Net Income (500) (500) (500) n/a 500 ON n/a Multiple Choice Option A Option B Option C