Delta72 Company received a cash advance of $700 from a customer.As a result of this event,

Question

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The receipt of a cash advance from a customer would increase the company's assets, specifically its cash account, by $700. This transaction does not affect stockholders' equity or liabilities, so choices B and C are incorrect. Choice D is incorrect, as it states that both assets and stockholders' equity increased, when only assets increased in this scenario.

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