A Customer Paid $60,000 to Foley Marketing on December 30

Multiple Choice

A customer paid $60,000 to Foley Marketing on December 30, 2020, to perform services from January 1, 2021 through December 31, 2024.If Foley fails to record the revenue that should be recognized, ________ would be understated by ________ each year.

A) net income, $15,000
B) net income, $12,000
C) liabilities, $15,000
D) assets, $12,000