Collection of cash affect accounting equation


Question: Cash is collected from a customer who was previously put on account. How does the collection of the cash affect the accounting equation?

A) assets increase; owner's equity increases

B) assets increase; liabilities increase

C) assets increase; assets decrease

D) assets decrease; owner's equity decreases

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Collection of cash affect accounting equation
Reference No:- TGS01928984

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)