A business collects $5,000 from its customer which was owed since a previous month. How does this affect the accounting equation of the business?
A) Assets increase by $5,000; liabilities decrease by $5,000.
B) Assets increase by $5,000; assets decrease by $5,000.
C) Assets increase by $5,000; liabilities increase by $5,000.
D) Assets increase by $5,000; equity increases by $5,000.
Correct Answer:
Verified
Q87: Following is an extract of account balances
Q88: Following is a list of account balances
Q89: Ace Inc. had the following transactions in
Q90: Lush Lawns performs lawn mowing services for
Q91: Sharon Samson starts a plumbing service named
Q93: Sharon Samson starts a plumbing service called
Q94: If a transaction increased an asset of
Q95: Robinson starts a plumbing service named Crusoe
Q96: Venus Inc. paid $5,000 for account payable.
Q97: Land was originally purchased for $20,000. It
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents