When an Account Receivable Is Collected in Cash, the Total

question 98

True/False

When an account receivable is collected in cash, the total assets of the business increase.

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Definitions:

Guaranty

A type of contract which ensures that a third party is secondarily liable for the debt to be paid; similar to a suretyship.

Liable

Being legally responsible for something, typically entailing a legal obligation to compensate for harm caused.

Artisan's Lien

A legal claim or right granted to craftsmen or repairers over the property they have serviced or improved, until payment is received.

Judicial Lien

A lien obtained by a creditor upon a debtor's property, granted by a court judgment, to secure payment of a debt.