Question

g Collection on a portion of Accounts Receivable will: Select one: a. Increase total liabilities b. Not affect total assets c. Increase stockholders' equity d. Decrease net income e. Not affect total receivables

Answer 1

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.