The Business Receives Cash from a Customer That Is Owed

Multiple Choice

The business receives cash from a customer that is owed to the company "on account," based on services rendered to the customer previously.How does the collection of the cash affect the accounting equation?

A) Assets increase; owner's equity increases.
B) Assets increase; liabilities increase.
C) One asset increases; one asset decreases.
D) Assets decrease; owner's equity decreases.