The Business Receives Cash from a Customer That Is Owed

question 62

Multiple Choice

The business receives cash from a customer that is owed to the company "on account," based on services rendered to the customer previously.How does the collection of the cash affect the accounting equation?

• A) Assets increase; owner's equity increases.
• B) Assets increase; liabilities increase.
• C) One asset increases; one asset decreases.
• D) Assets decrease; owner's equity decreases.

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