Contessa Company Collected $42,000 Cash on Its Accounts Receivable

Multiple Choice

Contessa Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

A) Total assets increase and equity decreases.
B) Total assets decrease and equity increases.
C) Total assets, total liabilities, and total equity are unchanged.
D) Both total assets and equity are unchanged and liabilities increase.
E) Both total assets and total liabilities decrease.