Cash collected on accounts receivable would produce what effect on the income st

Q: Cash collected on accounts receivable would produce what effect on the income st

Cash collected on accounts receivable would increase cash account and decrease accounts receivable account. Both cash and accounts receivable are assets account. Asset account will be reported on the balance sheet. Thus, cash collected on accounts receivable does not effect income statement account, hence the correct answer would be net income would remain unchanged. Correct answer is option A.

ID: 2542241 • Letter: C

Question

Cash collected on accounts receivable would produce what effect on the income statement?
A net income would remain unchanged B revenues would increase C net income would increase D revenues would decrease
Cash collected on accounts receivable would produce what effect on the income statement?
A net income would remain unchanged B revenues would increase C net income would increase D revenues would decrease

A net income would remain unchanged B revenues would increase C net income would increase D revenues would decrease

Explanation / Answer

Cash collected on accounts receivable would increase cash account and decrease accounts receivable account. Both cash and accounts receivable are assets account. Asset account will be reported on the balance sheet.

Thus, cash collected on accounts receivable does not effect income statement account, hence the correct answer would be net income would remain unchanged.

Correct answer is option A.

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Cash collected on Accounts Recievable would produce what effect on the income st

Cash collections The treasurer of Homeyra Corp. needs to estimate cash collectio

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Cash collected on accounts receivable would produce what effect on the income st

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