During June,the Grass Is Greener Company Mows 100 Lawns a Week

Multiple Choice

During June,the Grass is Greener Company mows 100 lawns a week and is paid in July by those customers.The company uses the accrual basis of accounting.Which financial statement is impacted by these transactions?

A) The income statement shows the effects of the transactions in June.
B) The income statement shows the effects of the transactions in July.
C) The balance sheet shows no effect from the transactions in June.
D) The transactions have no effect on the balance sheet.