Langley Incorporated accepted a $24,000 retainer for which the company agreed to provide services in the future. Recognizing this event would
A)defer the recognition of revenue.
B)increase the balance in the company's cash account.
C)cause the company's liabilities to increase.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

The retainer is a liability until the services are performed, so revenue recognition is deferred, cash increases, and liabilities increase.

Langley Incorporated Accepted a $24,000 Retainer for Which the Company