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:

Journalized

Refers to the process of recording financial transactions in the chronological order of their occurrence in a company's journal, which is a primary accounting record.

Receipt of Cash

The act of receiving cash during transactions, indicating an influx of funds.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, representing a liability until the obligation is fulfilled.

Quarterly Journals

Quarterly journals are publications that come out four times a year, offering articles, research, and updates on specific field of interests.