Asked by Anthony Rodriguez on Jun 24, 2024
Verified
Collection of an account receivable will increase total assets.
Account Receivable
Money owed to a company by its customers for goods or services delivered but not yet paid for.
Total Assets
The sum of all current and non-current assets owned by a business, representing its value and operational capacity.
Increase
Increase signifies a rise in value or quantity of a variable or account in the context of finance and accounting.
- Master the fundamentals of debits and credits in the context of the double-ledger accounting system.
- Pinpoint the conventional balances of assorted accounts (assets, liabilities, equity).
Verified Answer
KS
Kaizer SayaniJun 27, 2024
Final Answer :
False
Explanation :
Collection of an account receivable converts one asset (accounts receivable) into another asset (cash) without increasing the total assets.
Learning Objectives
- Master the fundamentals of debits and credits in the context of the double-ledger accounting system.
- Pinpoint the conventional balances of assorted accounts (assets, liabilities, equity).