Q281
Which of the following is true when a debtor pays his dues?
A.
The asset side of the balance sheet will decrease
B.
The asset side of the balance sheet will increase
C.
The liability side of the balance sheet will increase
D.
There is no change in total assets or total liabilities
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
When a debtor pays his dues there is no change in total assets or total liabilities because debtor in current assets decrease and cash & bank in current assets increase.