Flintstone Corp. collected cash from a customer during November for a service that it provided during December. How will the business activity of the month of December affect the basic accounting equation?

Multiple Choice

• Assets will increase, liabilities will increase, and stockholders' equity will not change.

• Assets will not change, liabilities will decrease, and stockholders' equity will increase.

• Assets will increase, liabilities will not change, and stockholders' equity will increase.

• Assets will decrease, liabilities will not change, and stockholders' equity will increase.