Collection of a $600 accounts receivable
A) has no effect on total assets.
B) decreases a liability $600; increases shareholders' equity $600.
C) increases an asset $600; decreases a liability $600.
D) decreases an asset $600; decreases a liability $600.

Question

Quizplus · Accepted Answer

Collecting accounts receivable converts one asset (accounts receivable) into another asset (cash), so total assets remain unchanged.

Collection of a $600 Accounts Receivable