Which of the following answers correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yancey Corporation?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following answers correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yancey Corporation? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Collecting the amount due ($582) from the credit card company increases assets (cash) and decreases assets (accounts receivable - credit card), resulting in no net effect on assets. It is reported as a cash inflow for operating activities.

Which of the Following Answers Correctly Describes the Effect of the Collection