Collecting cash on account causes:
A)assets to increase and owner's equity to decrease.
B)assets to increase and liabilities to increase.
C)assets to increase and owner's equity to increase.
D)no change in total assets.

Question

Quizplus · Accepted Answer

Collecting cash on account means that one asset (cash) increases while another asset (accounts receivable) decreases by the same amount, resulting in no change in total assets.

Collecting Cash on Account Causes