167. A company provides services on account. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues.
     1. (1) Increase, (2) Increase (3) Increase B) (1) No effect, (2) Increase (3) Increase

C) (1) No effect, (2) No effect (3) No effect D) (1) Increase, (2) No effect (3) Increase

168. A company received an order from a customer in June for services to be provided. Those services were provided in July, and the customer paid the full amount in August. According to the revenue recognition principle, in which month should the company record revenue?
     1. Evenly over the three months. B) July.

C) August. D) June.

169. Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit. When it makes the purchase:
     1. Its acid-test ratio decreases. B) Its acid-test ratio remains unchanged.

C) Its current ratio decreases. D) Its current ratio remains unchanged.

170. When treasury stock is acquired, what is the effect on assets and stockholders' equity?
     1. Assets and stockholders' equity increase.
     2. Assets decrease and stockholders' equity increase.
     3. Assets increase and stockholders' equity decrease.
     4. Assets and stockholders' equity decrease.

171. The balance sheet of ABC' reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. The return on assets for the year is 20%. What is ABC's net income for the year?

A) $4,500,000. B) $170,000. C) $85,000. D) $4,250,000.