Delta72 Company received a cash advance of $700 from a customer. As a result of this event,
A) assets increased by $700.
B) stockholders' equity increased by $700.
C) liabilities decreased by $700.
D) assets and stockholders' equity increased by $700.

Question

Quizplus · Accepted Answer

When Delta72 Company received a cash advance of $700 from a customer, it means that the company's assets increased by $700 as there is an increase in cash, which is an asset. The other options are not relevant to this event.

Delta72 Company Received a Cash Advance of $700 from a Customer