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CTP · Question #57
CTP Question #57: Real Exam Question with Answer & Explanation
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Question
- (Topic 1) A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?
Options
- ACash balance is not affected, and income is increased.
- BCash balance is increased, and income is decreased.
- CCash balance is increased, and income is not affected.
- DCash balance is increased, and income is increased.
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