Collection of a $600 Accounts Receivable
A) increases an asset $600; decreases an asset $600.
B) increases an asset $600; decreases a liability $600.
C) decreases a liability $600; increases owner's equity $600.
D) decreases an asset $600; decreases a liability $600.

Question

Quizplus · Accepted Answer

Collecting an accounts receivable increases cash (an asset) by $600 and decreases accounts receivable (also an asset) by $600, with no effect on liabilities or owner's equity.