Questions
Single choice
The receipt of cash in advance from a customer
Options
A.increases assets and liabilities.
B.increases assets and stockholders' equity.
C.None of these answer choices are correct.
D.increases assets and decreases stockholders' equity.
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Step-by-Step Analysis
Question: The receipt of cash in advance from a customer
Option 1: increases assets and liabilities. This is correct because receiving cash before earning revenue increases (1) assets (cash) and (2) liabilities (unearned revenue or/custome......Login to view full explanationLog in for full answers
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