Collection of a $1,000 Accounts Receivable
A) increases an asset $1,000; decreases an asset $1,000.
B) increases an asset $1,000; decreases a liability $1,000.
C) decreases a liability $1,000; increases stockholders' equity $1,000.
D) decreases an asset $1,000; decreases a liability $1,000.

Question

Quizplus · Accepted Answer

When a $1,000 accounts receivable is collected, it increases the asset cash by $1,000 and decreases the asset accounts receivable by $1,000. Therefore, the correct choice is A.