Which of the following describes the impact on the balance sheet when cash is received from the collection of an account receivable?
A)Current assets will not change.
B)Current assets will increase.
C)Stockholders' equity will increase.
D)Total assets will increase.

Question

Quizplus · Accepted Answer

When cash is received from the collection of an account receivable, one current asset (cash) increases while another current asset (accounts receivable) decreases by the same amount, leaving total current assets unchanged.

Which of the Following Describes the Impact on the Balance