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If a company receives $20,000 cash from its customers on account and uses the cash to pay $20,000 to its suppliers on accounts, the net
If a company receives $20,000 cash from its customers on account and uses the cash to pay $20,000 to its suppliers on accounts, the net result is that: assets would increase by $20,000 while liabilities would decrease by $20,000. liabilities would decrease by $20,000 while stockholders' equity would increase by $20,000. assets would decrease by $20,000 and liabilities would decrease by $20,000. liabilities would decrease by $20,000 and stockholders' equity would decrease by $20,000.
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