A Company Received a $72,000 Payment for Services to Be

Multiple Choice

A company received a $72,000 payment for services to be performed over the next few months.
What would the effect of this transaction on the current year's accounting equation?

A) No effect on Assets; $72,000 decrease in Liabilities; 72,000 increase in Stockholders' Equity
B) $72,000 increase in Assets; $72,000 increase in Liabilities; No effect on Stockholders' Equity
C) $72,000 increase in Assets; No effect on Liabilities; $72,000 increase in Stockholders' Equity
D) No effect on Assets; $72,000 increase in Liabilities; $72,000 decrease in Stockholders' Equity