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The Collection of an Account Receivable Is Recorded by a Debit

Question 136

Multiple Choice

The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable.If this error is not corrected:


A) Total liabilities are understated.
B) Total assets are understated.
C) Total liabilities are overstated.
D) Owners' equity is overstated.

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