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:

Prefix

A word, letter, or number placed before another indicating a relation to or modification of the original term's meaning.

Antitussive

relating to or denoting drugs used to prevent or relieve coughing.

Antiseptic

A substance that inhibits the growth of microorganisms on living tissue or surfaces, often used to prevent infection in wounds.

Anesthesia

The administration of drugs or other agents to eliminate sensation, typically to allow medical procedures or surgery without pain.