g Collection on a portion of Accounts Receivable will: Select one: a. Increase total liabilities b. Not affect total assets c. I

Question

Thepotemich [5.8K]

3 years ago

8

g Collection on a portion of Accounts Receivable will: Select one: a. Increase total liabilities b. Not affect total assets c. I

ncrease stockholders' equity d. Decrease net income e. Not affect total receivables

Business

1 answer:

jolli1 [7] · Answer 1 · 2021-11-05T11:39:12+03:00

Answer:

b. Not affect total assets

Explanation: Account receivable is a term used to describe the total amount expected to be paid by debtors to a a business Organisation on transactions completed during a given accounting period,it is an asset account.

WHEN THE ACCOUNT RECEIVABLES ARE COLLECTED, THEY DO NOT HAVE ANY EFFECTS ON THE ASSETS OF A BUSINESS ORGANISATION AS IT HAS ALREADY BEEN ACCOUNTED FOR IN THE ASSETS OF THE BUSINESS ORGANISATION.