If the owner of a company invested cash in a business enterprise,the transaction would include
A) debiting Cash and crediting Capital.
B) debiting Capital and crediting Cash.
C) debiting Cash and crediting Revenue.
D) debiting Revenue and crediting Cash.

Question

Quizplus · Accepted Answer

When the owner of a company invests cash in the business, the company's assets (Cash) increase, which is recorded by debiting the Cash account. Simultaneously, the owner's equity in the company increases, which is recorded by crediting the Capital account. This reflects the basic accounting principle that for every transaction, debits must equal credits.

If the Owner of a Company Invested Cash in a Business