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Jordan Phipps
on Oct 28, 2024

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Which of the following describes the impact on the balance sheet when cash is received from the collection of an account receivable?

A) Current assets will not change.
B) Current assets will increase.
C) Stockholders' equity will increase.
D) Total assets will increase.

Current Assets

Current assets are all assets that a company expects to convert to cash or use within one year, such as inventory, accounts receivable, and cash.

Stockholders' Equity

Ownership equity represented by the leftover interest in a corporation's assets once its liabilities have been subtracted.

Account Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for.

  • Discern between business activities that alter current assets and those that change total assets.
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Sharon SyafirudinNov 02, 2024
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