If a Payment Is Received from Accounts Receivable

question 23

Multiple Choice

If a payment is received from accounts receivable:

• A) shareholders' equity increases and an asset decreases.
• B) an asset increases and a liability increases.
• C) an asset decreases and a liability decreases.
• D) one asset increases and another asset decreases.

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Definitions:

General Ledger

A comprehensive accounting record of all transactions of a company, detailed by accounts.

Sales Discounts Column

A column in accounting ledgers or software that records the discounted amounts given to customers for prompt payments or other reasons.

Special Journals

Accounting journals designed for recording and categorizing specific types of transactions for efficiency and specialization.

Posting Process

The accounting procedure of transferring journal entry information to the ledger to update account balances.