If this event is recognized it is going to do the following:
- defer the recognition of revenue
- cause the company's assets to increase
- cause the company's liabilities to increase
What does it mean to accept a retainer?
This is the term that is used to refer to the agreement that is done in a work for hire contract. That is, it is one that has to be between the client as well as the company that would have the client retaining services that are ongoing.
Hence we can say that the recognition would
- defer the recognition of revenue
- cause the company's assets to increase
- cause the company's liabilities to increase
Therefore we can conclude by saying that all of the options that we have here are correct.
Read more on client retaining here: https://brainly.com/question/11621168
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Complete question
Lawyers Inc. accepted a $12,000 retainer for which the company agreed to provide services in the future. Recognizing this event would
defer the recognition of revenue.
cause the company's assets to increase.
cause the company's liabilities to increase.
All of the answers are correct.
