Wheaton Company Performed Services for a Customer on Account

Essay

Wheaton Company performed services for a customer on account. Indicate whether each of the following statements about this transaction is true or false.Assets and stockholders' equity both increase when the revenue is recognized.This transaction did not affect cash flows.The company recorded an increase in revenue and a decrease in accounts receivable.Recognition of revenue would be delayed until cash was received.This transaction is an example of an asset exchange transaction.