A&M CoProvided Services of $1,000,000 to Clients on Account

question 94

Multiple Choice

A&M Co.provided services of $1,000,000 to clients on account.How does this transaction affect A&M's accounts?

• A) Increase accounts receivable and cash by $1,000,000 each
• B) Increase accounts receivable and revenues by $1,000,000 each
• C) Increase accounts receivable and unearned revenues by $1,000,000 each
• D) Increase cash and decrease accounts receivable by $1,000,000 each

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Definitions:

Drawback

A disadvantage or negative aspect of a situation, plan, or product.

Brain Stem

The posterior part of the brain, adjoining and structurally continuous with the spinal cord, responsible for controlling vital life functions such as breathing, heartbeat, and blood pressure.

Structure

In psychology, it refers to the organization or arrangement of elements such as personality traits or the mind's cognitive aspects.

Function

The purpose or role that an object or process serves.