Dixon Company Collected Cash During December of Year 1 from a Customer

question 57

Essay

Dixon Company collected cash during December of Year 1 from a customer for services to be performed during January of Year 2. Indicate whether each of the following statements about this transaction is true or false.
_____ a) Dixon's Year 2 income statement would not be affected by this transaction.
_____ b) Dixon's Year 1 statement of cash flows would be affected by this transaction.
_____ c) This transaction is an asset exchange transaction.
_____ d) The revenue for the services provided will be recorded in Year 2.
_____ e) The transaction increases Dixon's liabilities.

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Definitions:

Evidence Supports

When empirical data or factual information validates or backs up a hypothesis, claim, or theory.

Evidence Contradicts

A situation where factual information or data challenges or refutes a standing hypothesis, belief, or perception.

Urbanization

The increasing concentration of populations in urban areas, often associated with the growth of cities.

Large-Scale Violence

A term describing extensive and serious acts of violence that impact large populations or geographic areas, often associated with conflicts or wars.