Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 13)
What is the impact on the balance sheet when a customer pays for a credit sale?
Assets increase and liabilities increase.
Assets decrease and liabilities decrease.
Assets increase and equity increases.
No net change to assets.
Explanation
Cash (asset) increases, and Accounts Receivable (asset) decreases; thus, there is no net change to total assets.
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