Collection on a portion of Accounts Receivable will: Select one: a. Increase total liabilities b. Not affect total assets c. Increase stockholders' equity d. Decrease net income e. Not affect total receivables

The correct answer is  C.

Explanation:    

Accounts Receivable simply refers to the amount of money owed to a business or an organization by it's debtors.

To make a collection simply means to retrieve some of these debts owed.

It cannot increase total liabilities because total liabilities is simply the amount of debt owned by a company to it's creditors. So Option A is out of it.It has the potential to increase total assets. Total assets refers to the total amount of assets owned by a person or an organization. Assets are items of economic value, which are expended over time to yield a benefit for the owner. The following are examples of assets which can be found in this category:CashMarketable securitiesAccounts receivablePrepaid expensesInventory   Fixed assetsIntangible assetsGoodwillOther assets

Therefore, Option B is not the answer.

Following from the explanation above, D cannot be the answer. Neither is the answer Option E. Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. Recall that cash is also categorized as an assets.

So when a client pays back a money owed to a business, cash is increased and the accounts receivable is decreased.

The transaction is recorded by debiting the cash account and crediting accounts receivable for exactly the same amount.

Cheers!

It says only administrators can delete accounts