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Impact on Accounting Equation of Receiving Cash In Advance

FINACT-Y3IMSH

Describe the impact on the accounting equation of receiving cash in advance from a customer whose order will be shipped next month. Only show the impact of receiving the cash, not of shipping the order.

A

Assets increase and equity increases.

B

Assets increase and equity decreases.

C

Assets decrease and liabilities increase.

D

Assets increase and liabilities increase.