The Fastbank Motorcycle Service Company Wins a $10 Million Bid

Multiple Choice

The Fastbank Motorcycle Service Company wins a $10 million bid to provide the repair services for a recall on a popular brand of motorcycles.No money is exchanged.The repair services are expected to be performed early next year.How will these events affect the balance sheet prepared at the end of this year?

A) Accounts Receivable will increase by $10 million.
B) Both Accounts Receivable and Accounts Payable will each increase by $10 million.
C) Both Accounts Receivable and Stockholders' Equity will each increase by $10 million.
D) These events will not impact the balance sheet.