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 decrease and equity increases.
B) Both total assets and total liabilities decrease.
C) Neither assets,total liabilities,nor equity are changed.
D) Both total assets and equity are unchanged and liabilities increase.
E) Total assets increase and equity decreases.