Collection of a $1,000 Accounts Receivable

question 42

Multiple Choice

Collection of a $1,000 Accounts Receivable

• A) increases an asset $1,000; decreases an asset $1,000.
• B) increases an asset $1,000; decreases a liability $1,000.
• C) decreases a liability $1,000; increases stockholders' equity $1,000.
• D) decreases an asset $1,000; decreases a liability $1,000.

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Definitions:

Significant Problem

An issue or challenge of considerable importance or magnitude that requires attention and resolution.

Significant Want

A strong desire or need that is considered important or of great consequence.

After-Tax Profits

The net income a company remains with after all taxes have been deducted from its earnings.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It represents the proportion of each dollar of revenue that the company retains as gross profit.