A200 Ch3 Quiz - Version H1. Ferrell Co. provided services of $280,000 to clients on account. How does this transaction affect Ferrell's accounts?a. Increase accounts receivable and cash by $280,000 eachb. Increase accounts receivable and revenues by $280,000 eachc. Increase accounts receivable and unearned revenues by $280,000 eachd. Increase cash and decrease accounts receivable by $280,000 each2. During 2014, Leslie, Inc. reported revenues of $287,000, expenses of $175,000, and dividends of $52,000. Which of the following statements is correct?a. net income totaled $60,000b. net income totaled $112,000c. the net increase to retained earnings was $52,000 d. the net decrease to retained earnings was $60,000 e. both b. and d.3. Barm Company incorrectly recorded the payment of $22,000 for expenses as an increase in cash of $22,000 and a decrease in retained earnings of $22,000. What is the effect of this error on Barm’s balance sheet?a. total assets will exceed total liabilities and stockholders' equity by $44,000b. total assets will exceed total liabilities and stockholders' equity by $22,000c. total assets will be less than total liabilities and stockholders' equity by $44,000d. total assets will be less than total liabilities and stockholders' equity by $22,000A200 Ch3 Quiz - Version HAnswer Section1. B2. B3.