Your Company Received Payment from a Customer Last Month for a Service

Multiple Choice

Your company received payment from a customer last month for a service that you provided this month.How will the business activity of the current month affect the basic accounting equation?

A) Assets will not change; liabilities will decrease; and stockholders' equity will increase.
B) Assets will increase, liabilities will increase, and stockholders' equity will not change.
C) Assets will increase, liabilities will not change, and stockholders' equity will increase.
D) Assets will decrease, liabilities will not change, and stockholders' equity will increase.