In the cash collection transaction where a company collects $10,000 from a customer as a deposit for goods that will be shipped in the future, the following items would be increased:
- Cash from Operations - The cash is collected, which increases cash flow from operations.
- Total Assets - Cash increases, which is an asset, so total assets increase.
- Total Liabilities - Since the company has received a deposit (which is considered a liability as it represents an obligation to deliver goods in the future), total liabilities increase as well.
The items that would not be increased are:
- Revenue - The revenue is not recognized until the goods are delivered, so there is no increase in revenue at this stage.
- Accounts Receivable - This does not apply in this case, as the cash has been collected upfront instead of being billed.
So, the correct selections to check would be:
- Total Liabilities
- Cash from Operations
- Total Assets