Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will:
A)decrease Accounts Payable.
B)increase Cash.
C)increase Accounts Receivable.
D)decrease G. Yale, Capital.

Question

Quizplus · Accepted Answer

When a company receives money from a customer on account, it means the customer is paying off a portion of their outstanding balance. This transaction increases the company's cash balance because they are receiving money. Therefore, the correct answer is to increase Cash. Accounts Receivable would decrease (not increase) with such a transaction, but this option is not provided. Accounts Payable and G. Yale, Capital are not directly affected by this transaction.

Ginger Yale Ice Company Receives Money from a Customer on Account