On August 1 Careful Architects Partnership received a $100,000 advance payment from a client on a major contract. The work for the contract will not begin until October. This means that . . .

Select one:

a. The firm will need to Debit Cash in August for $100,000

b. Profitability will be higher in October than in August

c. The firm cannot spend any of the Cash until October

d. The firm will need to Debit Deferred Revenue for $100,000 in August

e. Profitability will be higher in August than in October