A Business Collects $5,000 from Its Customer Which Was Owed

question 51

Multiple Choice

A business collects $5,000 from its customer which was owed since a previous month. How does this affect the accounting equation of the business?

• A)Assets increase by $5,000; liabilities decrease by $5,000.
• B)Assets increase by $5,000; assets decrease by $5,000.
• C)Assets increase by $5,000; liabilities increase by $5,000.
• D)Assets increase by $5,000; equity increases by $5,000.

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