Collection of an account receivable will increase total assets.

Account Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Total Assets

The sum of all current and non-current assets owned by a business, representing its value and operational capacity.

Increase

Increase signifies a rise in value or quantity of a variable or account in the context of finance and accounting.

Master the fundamentals of debits and credits in the context of the double-ledger accounting system.
Pinpoint the conventional balances of assorted accounts (assets, liabilities, equity).

Verified Answer

Final Answer :

False

Explanation :

Collection of an account receivable converts one asset (accounts receivable) into another asset (cash) without increasing the total assets.

Learning Objectives

Master the fundamentals of debits and credits in the context of the double-ledger accounting system.
Pinpoint the conventional balances of assorted accounts (assets, liabilities, equity).