The Business Collects a $5,000 Account Receivable from Its Customer

question 95

Multiple Choice

The business collects a $5,000 account receivable from its customer.How is the accounting equation affected?

• A) Assets increase $5,000; liabilities decrease $5,000.
• B) One asset increases by $5,000; another asset decreases $5,000.
• C) Assets increase $5,000; liabilities increase $5,000.
• D) Assets increase $5,000; owner's equity increases $5,000.

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Definitions:

Secondary Boycott

A form of protest in which a union encourages both its members and the general public not to buy the products of a company that is involved in a dispute.

Lockout

A tactic used by employers where they prevent employees from working during a labor dispute, often to pressure the union to accept contract terms.

RICO Act

The Racketeer Influenced and Corrupt Organizations Act, a United States federal law designed to combat organized crime by allowing prosecution and civil penalties for racketeering activity.

Sympathy Strike

A labor strike by one union in support of another union's strike, even though the first union does not have a direct dispute with the employer.