XYZ Coreceived $3,000 in Payments from Clients for Services Billed in in a Previous

Multiple Choice

XYZ Co.received $3,000 in payments from clients for services billed in a previous month.Which accounts will be affected and by what amounts under the accrual basis of accounting?

A) Cash will increase by $3,000 and accounts receivable decrease by $3,000.
B) Cash will increase by $3,000 and revenues will increase $3,000.
C) Accounts receivable will increase by $3,000 and revenue will increase by $3,000.
D) Accounts receivable will increase by $3,000 and cash will increase by $3,000.