When a company receives cash in advance for services that it is contractually required to provide over time, which of the following describes the effect to A$/$L$/$NI$/$E on the day the cash is received?

a$.$

Assets increase and net income increases

b$.$

Liabilities decrease and net income increases

c$.$

Liabilities increase and assets decrease

d$.$

Assets increase and liabilities increase

e$.$

Assets increase and decrease by the same amount, resulting in no effect