When a company recognizes cost of goods sold (ignore the effects of recognizing sales revenue): assets increase. O liabilities increase. uet income decreases. dividends decrease. Question 20 2.5pts Select the true statement, O assets decrease when inventory is purchased on account. O ignoring the effects of revenue recognition, net income increase when inventory is sold O Ignoring the effects of revenule recognition, net income decreases when inventory is sold. O ignoring the effects of revenue recoganition, equity increases when inventory is sold