Collection of a 650 Accounts Receivable increases an asset 6

Collection of a $650 Accounts Receivable

increases an asset $650; decreases an asset $650

decreases an asset $650; decreases a liability $650

increases an asset $650; decreases a liability $650

decreases a liability $650; increases stockholders’ equity $650

	A	increases an asset $650; decreases an asset $650
	B	decreases an asset $650; decreases a liability $650
	C	increases an asset $650; decreases a liability $650
	D	decreases a liability $650; increases stockholders’ equity $650

Solution

The answer is Option A. Collection of a $650 Accounts Receivable increases an asset $650 ; decreases an asset $650. There is increase in cash balance by $650 and decrease in Accounts receivable by by $650. Both items come under Current Asset of Balance sheet Assets Side.