The Collection of an Account Receivable Is Recorded by a Debit

question 136

Multiple Choice

The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable.If this error is not corrected:

• A)Total liabilities are understated.
• B)Total assets are understated.
• C)Total liabilities are overstated.
• D)Owners' equity is overstated.

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