Dixon Company collected cash during December of Year 1 from a customer for services to be performed during January of Year 2. Indicate whether each of the following statements about this transaction is true or false.
_____ a) Dixon's Year 2 income statement would not be affected by this transaction.
_____ b) Dixon's Year 1 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 Year 2.
_____ e) The transaction increases Dixon's liabilities.

Question

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The Answer of Dixon Company collected cash during December of Year 1 from a customer for services to be performed during January of Year 2. Indicate whether each of the following statements about this transaction is true or false.
_____ a) Dixon's Year 2 income statement would not be affected by this transaction.
_____ b) Dixon's Year 1 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 Year 2.
_____ e) The transaction increases Dixon's liabilities.

Dixon Company Collected Cash During December of Year 1 from a Customer