Receiving cash from a customer in payment of an account receivable would:
A)decrease total assets and increase owner's equity.
B)increase owner's equity and increase liabilities.
C)increase total assets and decrease liabilities.
D)have no effect on total assets or owner's equity.

Question

Quizplus · Accepted Answer

Receiving cash from a customer in payment of an account receivable does not change total assets or owner's equity because it is simply an exchange of one asset (accounts receivable) for another asset (cash).

Receiving Cash from a Customer in Payment of an Account