Able2 Company Received a Cash Advance of $800 from a Customer

question 128

Multiple Choice

Able2 Company received a cash advance of $800 from a customer. As a result of this event

• A) assets increased by $800.
• B) owner's equity increased by $800.
• C) liabilities decreased by $800.
• D) assets and owner's equity both increased by $800.

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Definitions:

Ambiguity

The presence of vagueness or uncertainty in meaning, often found in language, text, or legislation, leading to multiple possible interpretations.

Devise

In a will, a gift of real property.

Real Property

Property that includes the soil and any permanently bound fixtures to it, like constructions and arboreal elements.

Bequest

A gift left to someone in a will.