Question

Receiving a payment from a customer on account would:

A) increase stockholders' equity.
B) have no effect on total assets.
C) increase stockholders' equity.

Answer 1

Option B, have no effect on total assets, is the right answer.

Step-by-step explanation:

Option “B” is correct because if the payment is received from the customer then it will increase the cash account or it will increase the stockholders’ equity but will have no effect on the total assets. The total assets account gets affected when there are sale and purchase of assets or there is any loss of gain of assets. But in the given case there is no relation with the assets account so it will have no effect.