Collection of a $600 Accounts Receivable

question 139

Multiple Choice

Collection of a $600 Accounts Receivable

• A)increases an asset $600; decreases an asset $600.
• B)increases an asset $600; decreases a liability $600.
• C)decreases a liability $600; increases stockholders' equity $600.
• D)decreases an asset $600; decreases a liability $600.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, often found in scenarios involving trust, such as between a trustee and the beneficiaries.

Agency Ends

The termination or conclusion of an agency relationship between principal and agent, which can occur through various means such as completion of the agency purpose, by mutual agreement, or by law.

Duty of Segregation

An obligation to keep different tasks and responsibilities separate to reduce conflicts of interest or the risk of fraud or error.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.