which of the following transactions results in a decrease in the return on assets ratio? multiple choice increasing the sales price of the products sold. purchasing land by signing a long-term note payable. collecting cash from an account receivable. an increase in the net profit margin ratio.

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21-10-2022
Business

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which of the following transactions results in a decrease in the return on assets ratio? multiple choice increasing the sales price of the products sold. purchasing land by signing a long-term note payable. collecting cash from an account receivable. an increase in the net profit margin ratio.

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RajeevKumarBag RajeevKumarBag · Answer 1 · 2022-10-27T11:27:01+02:00

Any money you owe your clients for products or services they previously purchased from you is referred to as accounts receivable.

How will the balance sheet be impacted by cash received on accounts receivable?

A corporation changes the balance from one current asset to another when it receives cash against its A/R balance. While its cash balance rises, its A/R balance falls. Equity and liabilities are unchanged.

Does obtaining accounts receivable result in more money?

Customers' debt to you for credit you extended to them on prior purchases is recorded in an asset account called accounts receivable. Your cash account increases by the amount of the collection and the accounts receivable account falls by the same amount when the business gets cash from an accounts receivable.

To learn more about Accounts receivable from the given link.

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