Answered: collecting 300 dollars of account…

collecting 300 dollars of account receivable 1. no effect on total asset 2. decrease an asset and Decrease liability 3. Decrease an asset increase equity 4. increase asset Decrease liability

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

collecting 300 dollars of account receivable

1. no effect on total asset

2. decrease an asset and Decrease liability

3. Decrease an asset increase equity

4. increase asset Decrease liability

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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Accounts receivable is an current asset in Balance sheet.

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