Collection of an account receivable would:
A)decrease liabilities.
B)have no effect on owner's equity.
C)decrease owner's equity.
D)increase total assets.

Question

Quizplus · Accepted Answer

Collection of an account receivable shifts an asset from accounts receivable to cash but does not affect owner's equity, as it is merely exchanging one asset for another without impacting the owner's claim on the business assets.

Collection of an Account Receivable Would