Item$7$

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Item $7$

During June, the Parker$$s Lawn Service mows $100$ lawns a week; the company bills customers and full payment is due by July $15.$ The company uses the accrual basis of accounting. How will these events affect the company's financial statements?

Multiple Choice

In June, an asset and a liability account will both increase.

In June, an asset and a revenue account will both increase.

In July, an asset account will increase and a liability account will decrease.

In July, a liability account will decrease and a revenue account will increase.