During June, the Grass Is Greener Company mows 100 lawns a week; the company bills customers and full payment is due by July 15. The company uses the accrual basis of accounting. How will these events affect the company's financial statements?
A. In July, an asset account will increase and a liability account will decrease.
B. In July, a liability account will decrease and a revenue account will increase.
C. In June, an asset and a liability account will both increase.
D. In June, an asset and a revenue account will both increase.
Answer: D
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