In the scenario presented, the company collected $100,000 cash from a customer who had already been billed for the goods. This transaction impacts various accounts as follows:
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Total Stockholders’ Equity: This would not change immediately as the revenue recognition (which affects equity) already occurred when the customer was billed. Therefore, this item does not increase directly due to the cash collection.
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Cash from Operations: This would increase as the company has collected cash from its operations by receiving payment for goods already sold. So, this item does increase.
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Revenue: Revenue does not increase because it was already recognized at the time of billing. The cash collection does not affect revenue recognition as the revenue has already been recorded in the financial statements.
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Accounts Receivable: This would decrease, not increase, because the collection of cash means that the amount owed by the customer (accounts receivable) is being settled.
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Total Assets: This would increase because the cash account would increase (asset), and accounts receivable would decrease (also an asset). However, total assets increase overall due to the increase in cash.
Based on this analysis, the correct answers from the list provided would be:
- Cash from Operations
- Total Assets
So the final selections are:
- Cash from Operations
- Total Assets