Collection of a $600 Accounts Receivable

question 91

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 owner's equity $600.
• D) decreases an asset $600; decreases a liability $600.

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Definitions:

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Hours

Units of time, each equal to 60 minutes, used often as a measure for billing, labor, or scheduling.

Direct Labor Time Variance

The difference between the estimated time for direct labor to complete a task and the actual time taken, indicating efficiency or productivity issues.

Rate

The price or fee for goods or services, or the ratio between two amounts showing the cost of one in terms of the other, often used in context with interest and exchange rates.