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BusinessBusiness
4 March, 04:25

Receiving cash from a customer on account will

A. decrease liabilities.

B. have no effect on total assets.

C. increase total assets.

D. increase stockholders' equity.

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Answers (1)
  1. 4 March, 07:06
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    Answer: Option B

    Explanation: The receiving of cash from customers will have no effect on total assets, as the amount of inventory will decrease and the amount of cash will increase by the same amount. Thus the accounting equation will remain same from such a transaction as one asset will decrease and other will increase.

    Thus, from the above we can conclude that the correct option is B.
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