The collection of an account receivable will:
A) increase total assets and increase total owners' equity.
B) not affect total assets and increase total owners' equity.
C) decrease total assets and decrease total liabilities.
D) not affect total assets liabilities and owners' equity.

Question

Quizplus · Accepted Answer

The collection of an account receivable converts one asset (accounts receivable) into another asset (cash) without changing the total amount of assets, liabilities, or owners' equity.

The Collection of an Account Receivable Will