What Happens When a Company Collects Cash from Accounts Receivable

question 125

Multiple Choice

What happens when a company collects cash from accounts receivable?

• A)The asset accounts receivable increases.
• B)Stockholders' equity increases.
• C)Liabilities decrease.
• D)One asset increases and another asset decreases by an equal amount.

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Definitions:

Cactus Wren

The largest North American wren, characterized by its distinctive white and black plumage and adaptation to desert life.

Multicellular Eukaryotes

Organisms made up of multiple cells with complex structures including a membrane-bound nucleus, found in domains such as plants, animals, and fungi.

Photosynthetic Producers

Organisms that convert light energy into chemical energy through photosynthesis, providing the base for most of Earth's food chains.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that can move voluntarily and consume organic material.