Receiving a payment from a customer on account would:
A)increase both assets and owner's equity.
B)increase net income and decrease liabilities.
C)have no effect on total assets or owner's equity.
D)decrease liabilities and increase owner's equity.

Question

Quizplus · Accepted Answer

Receiving a payment from a customer on account affects the composition of assets (increasing cash while decreasing accounts receivable) without changing the total amount of assets or affecting owner's equity.

Receiving a Payment from a Customer on Account Would