Collection of an $800 accounts receivable
A) increases an asset $800; decreases a liability $800.
B) decreases a liability $800; increases shareholders' equity $800.
C) decreases an asset $800; decreases a liability $800.
D) has no effect on total assets.
Correct Answer:
Verified
Q52: If expenses are paid in cash, then
A)assets
Q53: The payment of a liability
A)decreases assets and
Q54: The purchase of an asset for cash
A)increases
Q55: If total liabilities increased by $22,500, then
A)assets
Q56: The purchase of an asset on credit
A)increases
Q58: If an individual asset is increased, then
A)there
Q59: When a liability decreases:
A)the account is credited
Q60: A paid income tax instalment
A)increases assets and
Q61: An accountant has debited an asset account
Q62: In recording an accounting transaction in a
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