Vic's Mart collects $200 of its accounts receivable.The expanded accounting equation impact is:
A)Cash and Capital increase $200.
B)Cash and Revenue increase $200.
C)Cash increases and Accounts Receivable decreases $200.
D)Accounts Receivable decreases and Capital increases $200.

Question

Quizplus · Accepted Answer

When Vic's Mart collects $200 of its accounts receivable, it means the company is receiving cash from its customers who owed money. This transaction is recorded as a decrease in the accounts receivable account (assets) as the company is getting paid, and an increase in the cash account (asset) as the company receives cash. Therefore, the impact on the expanded accounting equation is that cash increases, and accounts receivable decreases by $200.

Vic's Mart Collects $200 of Its Accounts Receivable