A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.

Question

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

Cash from Operations

Accounts Receivable

Revenue

Total Liabilities

Total Assets

1 point
5.
Question 5
A company r

Answer 1

When a company collects a $10,000 cash deposit from a customer for goods to be shipped in the future, the following items would be affected:

1. Cash from Operations: Increased (cash inflow)
2. Accounts Receivable: Not affected (the customer has paid cash, so there is no receivable)
3. Revenue: Not recognized yet (the revenue is only recognized when the goods are delivered)
4. Total Liabilities: Increased (the deposit represents an obligation to deliver goods in the future, which counts as a liability)
5. Total Assets: Increased (the increase in cash balances increases total assets)

Therefore, the correct options to select are:

• Cash from Operations
• Total Liabilities
• Total Assets