Receiving cash from a customer for payment on account for a sale that was recorded previously will:
A)have no effect on total assets.
B)increase total assets.
C)decrease total liabilities.
D)increase stockholder's equity.

Question

Quizplus · Accepted Answer

This transaction increases Cash and decreases Accounts Receivable.Cash and Accounts Receivable are both assets and the debit and credit offset one another causing total assets to remain the same.

Receiving Cash from a Customer for Payment on Account for a Sale