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9 November, 00:32

Cash collected on accounts receivable would produce what effect on the balance sheet?

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  1. 9 November, 01:47
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    c. Increase assets and decrease assets

    Explanation:

    As we know that the cash account and the account receivable account have come under the asset side of the balance sheet

    Since the cash is collected which increase the assets side but at the same time it reduced the account receivable balance which decreases the assets side of the balance sheet

    Therefore, the increase and decrease of the accounts are held on the asset side only.
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