X&Y Coreceived $4,000 in Payments from Clients for Services Billed in in a Previous

question 18

Multiple Choice

X&Y Co.received $4,000 in payments from clients for services billed in a previous month.What effect does this transaction have on the accounts under the accrual basis of accounting?

• A) Total assets increase by $4,000.
• B) Assets will increase by $4,000 and revenues will increase $4,000.
• C) Total assets will be decrease by $4,000.
• D) The net effect on assets is zero.

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Definitions:

Enforcement

The act of compelling compliance with laws, regulations, or standards.

Speedier Method

A more efficient and rapid process or technique to achieve a certain objective or outcome.

Confidentiality

The requirement to keep certain information secret or private, often seen in professional or contractual relationships.

Less Costly

Referring to an option or solution that is cheaper or requires less financial expenditure compared to others.