company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.

Question

Which of the following items would be increased by this cash collection transaction? (check all that apply)

Current Assets

Cash

Cash from Operations

Revenue

Accounts Receivable

1 point
4.
Question 4
A compa

Answer 1

In the scenario described, the company collected $100,000 cash from a customer who had already received and been billed for the goods in the previous quarter. Based on this transaction, the following items would be increased:

1. Current Assets - Cash is a current asset, and increases in cash would increase total current assets.
2. Cash - Directly increases by the amount collected ($100,000).
3. Cash from Operations - The cash collection would be considered cash inflow from operating activities, so it would increase cash from operations.
4. Accounts Receivable - This would not increase because the company is collecting cash from a customer who had already been billed, which would decrease accounts receivable.
5. Revenue - This would not increase because the revenue related to this transaction was already recognized when the goods were delivered and billed in the previous quarter.

Final selected items that would be increased:

• Current Assets
• Cash
• Cash from Operations