Leece Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on the company's financial statements?

Question

Leece Company experienced an accounting event that affected its financial statements as indicated below:  Which of the following accounting events could have caused these effects on the company's financial statements?

Quizplus · Accepted Answer

The decrease in accounts receivable and increase in cash indicate that the company collected cash in partial settlement of its account receivable. This is the only option that explains the changes in the financial statements.

Leece Company Experienced an Accounting Event That Affected Its Financial