On December 1, 2019, Blue Mountain Snow Removal Service Ltd. receives $2,100 in advance for an agreement to remove snow from a clients parking lot during the months of December, January, and February. As of December 31, 2019, Blue Mountain Snow Removal Service Ltd:

• A.

  would have a $0 liability to its client under accrual accounting, and would have a $1,400 liability to its client under cash-basis accounting

• B.

  would have a $1,400 liability to its client under accrual accounting, and would have a $2,100 liability to its client under cash-basis accounting

• C.

  would have recognized $700 revenue under accrual accounting, and would have recognized $2,100 revenue under cash-basis accounting

• D.

  would have recognized $700 cash under accrual accounting, and would have recognized $2,100 cash under cash-basis accounting