Mick's Mart collects $100 of its accounts receivable. The expanded accounting equation impact is:
A) Cash and Capital increase $100.
B) Cash and Revenue increase $100.
C) Cash increases and Accounts Receivable decreases $100.
D) Accounts Receivable decreases and Capital increases $100.

Question

Quizplus · Accepted Answer

Collecting accounts receivable impacts the balance sheet by increasing cash and decreasing accounts receivable by the same amount, with no effect on revenue or capital.

Mick's Mart Collects $100 of Its Accounts Receivable