The collection of a trade receivable from a customer would do which of the following?
A) Increase liabilities.
B) Decrease liabilities.
C) Not affect liabilities.
D) Decrease shareholders' equity.

Question

Quizplus · Accepted Answer

Collecting a trade receivable from a customer affects the asset side of the balance sheet by decreasing receivables and increasing cash but does not affect liabilities or shareholders' equity.

The Collection of a Trade Receivable from a Customer Would