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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Definitions:

National Labor Relations Act

A foundational law in the United States enacted in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices that can harm the general welfare of workers, businesses, and the U.S. economy.

Market-Based Economic Theory

An economic perspective that emphasizes the efficiencies generated by free markets, minimal governmental intervention, and competition driving innovation and productivity.

Property Rights

Legal rights to possess, use, and distribute property.

Worker Rights

The entitlements and protections afforded to employees, including fair wages, safe working conditions, and freedom from discrimination.