A company shows $1,000,000 in Accounts Receivable on its Balance Sheet. If the company collects $600,000...
A company shows $1,000,000 in Accounts Receivable on its Balance Sheet. If the company collects $600,000 of these during the current period, the effect on Current Assets will be:
A. An increase of $400,000
B. A decrease of $600,000
C. An increase of $600,000
D. No effect
Homework Answers
| Option D is the answer | |
|
When $600,000 was collected, Accounts Receivable balance decreases by $600,000 and cash balance increased by $600,000 Hence no effect Comment if you face any issues |
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A company shows $1,000,000 in Accounts Receivable on its Balance
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