Collection of a $600 accounts receivable
A) increases an asset $600; decreases a liability $600.
B) decreases a liability $600; increases shareholders' equity $600.
C) decreases an asset $600; decreases a liability $600.
D) has no effect on total assets.

Question

Quizplus · Accepted Answer

Collecting an accounts receivable increases cash (an asset) while decreasing accounts receivable (also an asset) by the same amount, leaving total assets unchanged.

Collection of a $600 Accounts Receivable