Which of the following is true when a debtor pays his dues?
A. The asset side of the balance sheet will decrease
B. The asset side of the balance sheet will increase
C. The liability side of the balance sheet will increase
D. There is no change in total assets or total liabilities
Answer: Option D
Solution(By Examveda Team)
When a debtor pays his dues there is no change in total assets or total liabilities because debtor in current assets decrease and cash & bank in current assets increase.This Question Belongs to Commerce >> Accounting
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Comments ( 2 )
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
A Debtor is a current Asset under Accounts Receivable in a Balance Sheet. When an organization collected money from the debtor it's impacting in Balance Sheet Increase Cash/ Bank (CA) and decreases in Acc. Receivable (debtor) a/c. In the above MCQ option :D is wrong.
Why that happened explain me