Collection of a $1,500 accounts receivable
A)increases an asset $1,500; decreases a liability $1,500.
B)decreases a liability $1,500; increases shareholders' equity $1,500.
C)decreases an asset $1,500; decreases a liability $1,500.
D)has no effect on total assets.

Question

Quizplus · Accepted Answer

Collecting accounts receivable increases cash (an asset) and decreases accounts receivable (also an asset), so total assets remain unchanged.

Collection of a $1,500 Accounts Receivable