An owner investment of cash in a corporation increases:

Question

Quizplus · Accepted Answer

When an owner invests cash in a corporation, it increases the corporation's assets (cash) and results in an increase in shareholders' equity (owner's investment). Hence, option D is the correct choice. Option A is incorrect because an increase in assets should not lead to an increase in liabilities. Option B is incorrect because an owner investment affects only assets and shareholders' equity but not other assets. Option C is incorrect because an increase in assets should result in an increase in shareholders' equity rather than a decrease.

An Owner Investment of Cash in a Corporation Increases