Assume That a Company Obtains Legal Services from Its Lawyer

Multiple Choice

Assume that a company obtains legal services from its lawyer, worth $1,000, but has not yet paid for those services when the accounting period ends. Under accrual accounting, the books should reflect

A) An asset of $1,000 and a revenue of $,1000
B) A revenue of $1,000 and an expense of $1,000
C) Nothing, since the lawyer has not yet been paid
D) A liability of $1,000 and an expense of $1,000