Receiving Cash from a Customer for Settlement of an Accounts

question 12

Multiple Choice

Receiving cash from a customer for settlement of an Accounts Receivable will

• A)decrease Owner's Equity.
• B)increase net income.
• C)increase total assets.
• D)not affect total assets.

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Legal Tender

Currency that must be accepted if offered in payment of a debt in the jurisdiction in which the debt is being paid.

Currency

A system of money in general use in a particular country or economic context.

Debit Cards

Plastic payment cards that allow users to make transactions directly from their bank accounts, unlike credit cards, which provide a line of credit.