The business receives cash from a customer that is owed to the company $\text{'}$on account', based on services rendered to the customer previously. How does the collection of the cash affect the accounting equation?

Question $10$ Answer

A$.$

Assets increase; owners' equity increases.

B$.$

Assets increase; liabilities increase.

C$.$

One asset increases; one asset decreases.

D$.$

Assets decrease; owners' equity decreases.