Final answer:
Collecting cash for future services increases both assets and liabilities due to the addition of cash and the creation of a liability for unearned revenue. When AAA Consulting Services collects cash for services to be provided in the future, it recognizes this as unearned revenue or a liability, resulting in an increase in assets and liabilities.
Step-by-step explanation:
When AAA Consulting Services collected cash for services to be provided in the future, recognizing this event would cause the company's assets and liabilities to increase. This is because the cash received would increase the company's assets, but at the same time, the firm would have a liability, as it owes a service to the customer in the future, often referred to as deferred revenue or unearned revenue.