A business received $10,000 from a customer in payment of an amount owed. The effect of the transaction on the accounting equation was to:
A) increase one Asset, decrease another Asset.
B) increase an Asset, increase a Liability.
C) decrease an Asset, decrease a Liability.
D) increase an Asset, increase Owner's Equity.

Question

Quizplus · Accepted Answer

Receiving $10,000 from a customer in payment of an amount owed increases the cash asset (one asset increases) and decreases accounts receivable (another asset decreases), with no effect on liabilities or owner's equity.

A Business Received $10,000 from a Customer in Payment of an Amount