BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Assets increase $100, equity increases $100
|
|
|
One asset increases $100, another asset decreases $100 (no net change to assets)
|
|
|
Assets increase $100, liabilities decrease $100
|
|
|
Assets increase $100, liabilities increase $100
|
Detailed explanation-1: -Accounts receivable is considered an asset. This is because it represents money that is owed to the company by customers. While this money may not be immediately available, it is still considered an asset because it is essentially a claim on future earnings.
Detailed explanation-2: -When cash is received from a customer on account, the corresponding amount is reduced from the accounts receivable account and added to the cash account. Since both of these accounts are current assets, there will be no change in the current assets and total assets.
Detailed explanation-3: -Asset accounts. A debit increases the balance and a credit decreases the balance.
Detailed explanation-4: -Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR.