Oak Company recognized $$500$ of cost of goods soid sales revenue. Oak uses the cost of goods sold part of the transaction and not the sales reflects the effect of recognizing the cost of goods sold on the financial statements.

Balance Sheet

Income Statement

Statement

Assets $=$ Liab. $+$ Stockholders' Revenue $-$ Expense $=\{\begin{array}{ccc}\text{:}[& \text{N}\text{e}\text{t}& ]\\ & \text{I}\text{n}\text{c}\text{o}\text{m}\text{e}& \end{array}$

of Cash

Flows

A$.500$

B$.(500)$

C$.(500)(500)\frac{n}{a}$

$\frac{n}{a}$

$500$

$(500)500$

D$.(500)$

$(500)$

$\frac{n}{a}$

$\frac{n}{a}$

n$/$a

Option C

Option D

Option A

Option B