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

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.