Which of the Following Asset Accounts Is Increased When a Receivable

question 68

Multiple Choice

Which of the following asset accounts is increased when a receivable is collected?

• A) Accounts Receivable
• B) Supplies
• C) Accounts Payable
• D) Cash

---

Definitions:

Annual Profit

Annual profit refers to the total profit a business earns over the course of a fiscal year, accounting for all revenues minus expenses during that period.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

Total Cost

The sum of all expenses incurred by a firm in producing goods or services, including both fixed and variable costs.