Go Big Red Retail Store collected $16,000 of its accounts receivable. The expanded accounting equation changes include:
A) Cash and Capital increase $16,000.
B) Cash and Revenue increase $16,000.
C) Cash increases and Accounts Receivable decreases $16,000.
D) Accounts Receivable decreases and Capital increases $16,000.

Question

Quizplus · Accepted Answer

Collecting accounts receivable affects the asset side of the balance sheet by increasing cash and decreasing accounts receivable by the same amount, with no impact on revenue or capital at the time of collection.

Go Big Red Retail Store Collected $16,000 of Its Accounts