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.

Question

Quizplus · Accepted Answer

When the owner invests cash in a business, the business's assets increase as cash is received, and the owner's equity also increases as the investment becomes a liability owed to the owner. Therefore, assets and owner's equity increase.

When the Owner Invests Cash in a Business