Sky Co. collected a $5,000 cash advance from a customer on November 1, 2015 for work to be performed over a six-month period beginning on that date. If the year-end adjustment is properly recorded, what will be the effect on Tocca's 2015 financial statements?

Select one:

A. Increase assets and increase liabilities

B. Increase assets and increase revenues

C. Decrease liabilities and increase revenues

D. No effect