The Collection of Cash from a Customer on Account Would

question 108

Multiple Choice

The collection of cash from a customer on account would:

• A) increase net income and shareholders' equity
• B) increase assets and decrease liabilities
• C) increase assets and increase net income
• D) have no effect on net income or shareholders' equity

---

Definitions:

Binding Contract

An agreement between two or more parties that is legally enforceable.

Consideration

The value (which could be in the form of money, goods, services, or a promise) exchanged between parties in a contract, making the agreement legally binding.

Tort of Deceit

A civil wrong that involves making false representations with the intentional or reckless disregard for the truth, causing someone else to suffer damage.

Contract Terms

The specific provisions, conditions, and requirements agreed upon by the parties in a contract.