Which of the following transactions would cause an increase in both assets and owners' equity?
A)Investment of cash in the business by the owner.
B)Sale of land for a price less than its cost.
C)Borrowing money from a bank.
D)Sale of land for cash at a price equal to its cost.

Question

Quizplus · Accepted Answer

Investment of cash in the business by the owner increases the cash (asset) balance and increases the owners' equity as it represents the owner's contribution to the business.

Which of the Following Transactions Would Cause an Increase in Both