Question: x & Y Co . received $ 4 , 0 0 0 in payments from clients for services billed in a previous month. What effect

x

Y

.

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?

The net effect on assets is zero.

Total assets increase by $

4, 000 .

Total assets decrease by $

4, 000 .

Assets increase by $

4, 000

and revenues increase $

4, 000 .

x&Y Co. received $4,000 in payments from clients for services billed

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