Exchange Company collected $14,000 from one of its customers,the amount owed from the previous month.How does this affect the accounting equation for Exchange?
A)assets increase by $14,000;liabilities decrease by $14,000
B)assets increase by $14,000;assets decrease by $14,000
C)assets increase by $14,000;liabilities increase by $14,000
D)assets increase by $14,000;equity increases by $14,000

Question

Quizplus · Accepted Answer

The collection of $14,000 from a customer increases cash (an asset) by $14,000 and decreases accounts receivable (another asset) by $14,000, resulting in no net change in total assets.

Exchange Company Collected $14,000 from One of Its Customers,the Amount