When Collection Is Made on Accounts Receivable

question 12

Multiple Choice

When collection is made on Accounts Receivable,

• A)total assets will remain the same.
• B)stockholders equity will increase.
• C)total assets will increase.
• D)total assets will decrease.

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Definitions:

State Unemployment Tax

A tax that employers are required to pay to the state, typically used to fund unemployment compensation benefits for workers who have lost their jobs.

Payroll Register

A payroll register is a comprehensive document that contains detailed information about the payroll of a company's employees, including wages, withholdings, and net pay.

Warranty

A guarantee provided by a seller to a buyer that a product will meet certain specifications or that defective products will be repaired or replaced.

Contingent Liability

A future financial liability that could arise based on the result of a certain event.