What Is the Effect on the Accounting Equation When a Company

question 58

Multiple Choice

What is the effect on the accounting equation when a company collects an account receivable?

• A)Total assets increase,total liabilities increase,and total shareholders' equity stays the same.
• B)Total assets stay the same,total liabilities stay the same,and total shareholders' equity stays the same.
• C)Total assets decrease,total liabilities stay the same,and total shareholders' equity decreases.
• D)Total assets stay the same,total liabilities increases,and total shareholders' equity decreases.

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Definitions:

Infectious Diseases

Illnesses caused by pathogens such as bacteria, viruses, fungi, or parasites, which can be transmitted from person to person, animals, or the environment.

Chronic Diseases

Long-lasting medical conditions that are generally progressive and can be controlled but not cured, such as heart disease, diabetes, and arthritis.

Time Frames

Specific periods or intervals during which certain activities are carried out or events occur.

Illnesses

A state in which a person suffers from a disease or health condition.