The following accounts, in alphabetical order, were selected from recent financial statements of Krispy Kreme Doughnuts, Inc. For each account, indicate whether the normal balance is a debit or a credit, and the financial statementbalance sheet or income statementwhere the account should be presented.

Account		Normal Balance		Financial statement
Accounts payable		select between debit and credit Credit Debit		select between balance sheet and income statement Balance sheet Income statement
Accounts receivable		select between debit and credit Credit Debit		select between balance sheet and income statement Balance sheet Income statement
Common stock		select between debit and credit Debit Credit		select between balance sheet and income statement Income statement Balance sheet
Depreciation expense		select between debit and credit Debit Credit		select between balance sheet and income statement Income statement Balance sheet
Interest expense		select between debit and credit Debit Credit		select between balance sheet and income statement Income statement Balance sheet
Interest income		select between debit and credit Credit Debit		select between balance sheet and income statement Income statement Balance sheet
Inventories		select between debit and credit Debit Credit		select between balance sheet and income statement Balance sheet Income statement
Prepaid expenses		select between debit and credit Credit Debit		select between balance sheet and income statement Income statement Balance sheet
Property and equipment		select between debit and credit Credit Debit		select between balance sheet and income statement Balance sheet Income statement
Revenues		select between debit and credit Credit Debit		select between balance sheet and income statement Balance sheet Income statement

If a company receives cash from a customer before performing services for the customer, then

A.	assets decrease and liabilities increase.

B.	assets increase and liabilities increase.

C.	assets increase and liabilities decrease.

D.	assets increase and stockholders' equity increases.