Powers Corporation Received a Cash Advance of $500 from a Customer.As

question 117

Multiple Choice

Powers Corporation received a cash advance of $500 from a customer.As a result of this event,

• A)assets increased by $500.
• B)equity increased by $500.
• C)liabilities decreased by $500.
• D)Both assets and equity increased by $500.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Semi-Annually

Occurring or calculated over half a year; typically refers to interest computed twice a year.

Trust Fund

A legal entity established to hold assets on behalf of a person or group, often used for estate planning or to manage money for beneficiaries.

Present Value

A payment’s economically equivalent amount at a prior date, allowing for the time value of money.