If a Company Is Paid $20,000 on Accounts Receivable and Uses

question 68

Multiple Choice

If a company is paid $20,000 on accounts receivable and uses the money to pay $20,000 on accounts payable then:

• A)assets would increase by $20,000 while liabilities would decrease by $20,000.
• B)liabilities would decrease by $20,000 while shareholders' equity would increase by $20,000.
• C)Both assets and liabilities would decrease by $20,000.
• D)Both assets and shareholders' equity would decrease by $20,000.

---

Definitions:

Psychology Class

An academic course focused on the study of the mind, brain, and behavior.

Course Policy

The set of rules and guidelines provided by an educational or training program that outlines expectations and procedures.

Gestalt Psychology

A school of psychology that studies how people integrate and organize perceptual information into meaningful wholes, emphasizing the holistic nature of the human mind.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively.