Which of the following correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yankee Corporation?

Question

Quizplus · Accepted Answer

Option A correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yankee Corporation. The collection of cash will increase the cash and cash equivalents balance on the balance sheet, but will not affect the income statement since it is not a revenue-earning activity.

Which of the Following Correctly Describes the Effect of the Collection