Collection of a $1,500 Accounts Receivable

question 72

Multiple Choice

Collection of a $1,500 accounts receivable

• A)increases an asset $1,500; decreases a liability $1,500.
• B)decreases a liability $1,500; increases shareholders' equity $1,500.
• C)decreases an asset $1,500; decreases a liability $1,500.
• D)has no effect on total assets.

---

Definitions:

Acquiring Firms

Companies that purchase a majority stake in other companies to take over their operations.

Synergistic Benefits

Gains realized from the combination or cooperation of different groups, systems, or companies, where the result is greater than the sum of their separate effects.

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.