Go Blue Retail Store Collected $12,000 of Its Accounts Receivable

question 58

Multiple Choice

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include

• A) Cash and Capital increase, $12,000.
• B) Cash and Revenue increase $12,000.
• C) Cash increases and Accounts Receivable decreases $12,000.
• D) Accounts Receivable decreases and Capital increases $12,000.

---

Definitions:

Process Costing

A costing method used for homogenous products, where costs are accumulated for a continuous process and then assigned to units of output.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing expenses to convert raw materials into finished products.

Curing Department

A specialized area in a manufacturing or production facility where processes such as drying, hardening, or chemical treatment are applied to products.

Equivalent Unit

A measure used in cost accounting to express the amount of work in progress inventory in terms of completed units.