Dixon Company collected cash in 2015 from a customer for services to be performed beginning January 2016.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Dixon's 2016 income statement would not be affected by this transaction.
_____ b)Dixon's 2015 statement of cash flows would be affected by this transaction.
_____ c)This transaction is an asset exchange transaction.
_____ d)The revenue for the services provided will be recorded in 2016.
_____ e)The transaction increases Dixon's liabilities.

Question

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The Answer of Dixon Company collected cash in 2015 from a customer for services to be performed beginning January 2016.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Dixon's 2016 income statement would not be affected by this transaction.
_____ b)Dixon's 2015 statement of cash flows would be affected by this transaction.
_____ c)This transaction is an asset exchange transaction.
_____ d)The revenue for the services provided will be recorded in 2016.
_____ e)The transaction increases Dixon's liabilities.

Dixon Company Collected Cash in 2015 from a Customer for Services