Asked by Alyssa Sweeting on Jul 12, 2024
Verified
When an account receivable is collected in cash, the total assets of the business increase.
Total Assets
The sum of all current and non-current assets owned by a company, representing its overall value.
Cash Collection
The process of receiving and processing payments from customers, including cash, checks, and credit card payments.
- Understand the impact of cash transactions on assets.
Verified Answer
CF
Crystal FisetteJul 13, 2024
Final Answer :
False
Explanation :
When an account receivable is collected in cash, one asset (cash) increases while another asset (accounts receivable) decreases by the same amount, leaving total assets unchanged.
Learning Objectives
- Understand the impact of cash transactions on assets.
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