Final answer:
Lawyers Inc.'s acceptance of a $12,000 retainer asset increases, and they defer revenue recognization until services are provided, also creating a liability.
Step-by-step explanation:
When Lawyers Inc. accepts a $12,000 retainer to provide services in the future, several things occur on the accounting side. Recognizing this event would commit to several actions: Firstly, defer the recognition of revenue until the actual services are rendered.
Secondly, it would also cause the company's assets to increase because they now have an additional $12,000 in cash or cash equivalents. Lastly, the company's liabilities would increase as this money is owed in the form of services to be provided in the future. Therefore, the correct answer is: All of the answers are correct.