Investment of additional cash in the business by the owner

Asked by admin @ 30/10/2021 in Business viewed by 253 People

When the owner invests cash in a business:

a. assets and revenue increase.
b. assets increase and owner's equity decreases.
c. liabilities decrease and owner's equity increases.
d. assets and owner's equity increase.?

Answered by admin @ 30/10/2021

I think the correct answer from the choices listed above is option d. When the owner invests cash in a business, assets and owner's equity increase. The owner's capital increases as well in this case. Hope this answers the question. Have a nice day.

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Investment of additional cash in the business by the owner

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