Leece Company experienced an accounting event that affected its financial statements as indicated below:
$ +/- \quad\quad\quad \text{n/a}\quad\quad\quad\quad\quad \text{n/a}\quad\quad\quad \text{n/a}\quad\quad\quad\quad \text{n/a}\quad\quad \text{n/a}\quad\quad \text{+QA}$ Which of the following accounting events could have caused these effects on the company's financial statements?
A) Provided consulting services on account
B) Provided consulting services for cash
C) Collected cash in partial settlement of its account receivable
D) The information provided does not represent a completed event.

Question

Leece Company experienced an accounting event that affected its financial statements as indicated below: 
$ +/- \quad\quad\quad \text{n/a}\quad\quad\quad\quad\quad \text{n/a}\quad\quad\quad \text{n/a}\quad\quad\quad\quad \text{n/a}\quad\quad \text{n/a}\quad\quad \text{+QA}$ Which of the following accounting events could have caused these effects on the company's financial statements?
A) Provided consulting services on account 
B) Provided consulting services for cash 
C) Collected cash in partial settlement of its account receivable 
D) The information provided does not represent a completed event.

Quizplus · Accepted Answer

The increase in cash and decrease in accounts receivable indicates that the company collected cash in partial settlement of its accounts receivable. Option A and B would have resulted in an increase in accounts receivable or cash respectively. Option D is not a valid choice as the information provided suggests a completed event.

Leece Company Experienced an Accounting Event That Affected Its Financial