If the company collect money from A/R Account which of the following will be correct?

My answer is A. A/R Account will reduce.

option A.......................................

A r account will be reduce option a

Letter A. The entry would be Debit Cash for the amount collected and Credit A/R Account 

Account receivable will be reduced and the cash or bank account will show a corresponding increase. Since AR as well as cash/bank are constitents of Current assets, there will not be any increase or decrease either in Current assets or on working capital (Unless and until cash is used to settle any current liabilities).

The Correct answer is : A- A/R Account will reduce, because the entry will be:

Dr.           Cash 

         Cr.          A/R 

- B & C is not Correct because Current Ratio = Current Assets / Current Liabilities and the both Cash and A/R are current assets so the total affect of the  previous entry on Current assets will be Zero.

 - D also not correct because the working Capital = Current assets - Current Liabilities 

and the total affect of the  previous entry on Current assets is Zero and no affect on the current Liabilities.

Reduce A/R A/c, due to collection

No (A) the A/R Balance will reduce

No.(B) , (C) And (D) are wrong cos No effect on current ratio nor working capital 

Correct Answer is A

current Ratio and working capital will not be changed by collecting A/R

account receivable accounts will reduce