Which transaction leaves the total amount of assets unchanged at the time it occurs?
Correct answer: B. Collecting cash from a debtor
- A. Buying equipment for cash
- B. Collecting cash from a debtor
- C. Receiving a bank loan in cash
- D. Paying an outstanding supplier
Explanation
Collection from a debtor increases cash but decreases accounts receivable by the same amount. Buying equipment for cash also leaves total assets unchanged, but it changes their form, making this question dependent on the listed transaction; therefore option A is also technically unchanged.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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