Collection of a $600 Accounts Receivable

question 53

Multiple Choice

Collection of a $600 accounts receivable

• A) has no effect on total assets.
• B) decreases a liability $600; increases shareholders' equity $600.
• C) increases an asset $600; decreases a liability $600.
• D) decreases an asset $600; decreases a liability $600.

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Definitions:

Banks

Financial institutions that accept deposits from the public, make loans, and provide various financial services, including currency exchange and wealth management.

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, either statically as an accumulation of charge or dynamically as a current.

Expansion

A phase in the business cycle where economic activity is increasing, characterized by higher output, employment, and trade.

Time Period

A specific duration or interval of time, often used in the context of analysis, planning, or measurement within various fields including finance and economics.