Crabtree Company's Tabular Analysis at the Beginning of August Included

question 38

Multiple Choice

Crabtree Company's tabular analysis at the beginning of August included the following balances: How would Crabtree record the collection of the receivables in the tabular analysis?

• A)Increase Cash by $2000 and increase Revenues by $2000.
• B)Decrease Cash by $1500 and decrease Accounts Payable by $1500.
• C)Increase Cash by $2000 and decrease Accounts Receivable by $2000.
• D)Increase Cash by $1500 and decrease Accounts Receivable by $1500.

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Definitions:

Capital Account

A component of a nation’s balance of payments that records all transactions of purchase and sale of assets, like real estate and stocks with other countries.

Financial Account

A component of a country's balance of payments that records transactions of foreign investment and domestic investments abroad.

Capital Account

A national account that shows the net change in asset ownership for a country, including transactions like foreign investments and loans.

Financial Account

A component of a country's balance of payments that records all transactions for investment in foreign assets and liabilities.