When collection is made on Accounts Receivable,
A) owner's equity increases.
B) total assets decrease.
C) total assets remain the same.
D) total assets increase.

Name: When collection is made on Accounts Receivable, A) owner's equity increases. B) total assets decrease. C) total assets remain the same. D) total assets increase.
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Question

Quizplus · Accepted Answer

When accounts receivable is collected, cash (an asset) increases while accounts receivable (another asset) decreases by the same amount, leaving total assets unchanged.

When Collection Is Made on Accounts Receivable