When a collection is made on accounts receivable
a. Total assets will remain the same
b. stockholders' equity will increase
c. Total assets will increase
d. Total assets will decrease

Question

When a collection is made on accounts receivable
a. Total assets will remain the same
b. stockholders' equity will increase
c. Total assets will increase
d. Total assets will decrease

Yixin · Accepted Answer

a. Total assets will remain the same
This is because you debit bank and credit the receivable by the same amount, thus total assets do not change.

When a collection is made on accounts receivable

a. Total assets will remain the same

b. stockholders' equity will increase

c. Total assets will increase

d. Total assets will decrease

Unlock this answer

Unlock this answer

When a collection is made on accounts receivable a. Total assets will remain the same b. stockholders' equity will increase c. Total assets will increase d. Total assets will decrease

Unlock this answer

Unlock this answer

When a collection is made on accounts receivable

a. Total assets will remain the same

b. stockholders' equity will increase

c. Total assets will increase

d. Total assets will decrease