Question

A company collected $100 in cash from a customer who both received and was billed for the goods last quarter. Which of the following items would be increased by this cash transaction?

1) Accounts Receivable
2) Accounts Payable
3) Cash
4) Inventory

Answer 1

The item that would be increased by the cash transaction is Cash.

Step-by-step explanation:

The item that would be increased by the cash transaction is Cash.

When a company collects cash from a customer, it increases its cash balance. In this case, the company received payment from the customer for the goods, so the cash account would be increased.