J.R. Tenten's investment of cash and equipment in her existing business will
A) decrease assets and increase a liability.
B) increase assets and liabilities.
C) decrease assets and increase owner's equity.
D) increase assets and owner's equity.

Question

Quizplus · Accepted Answer

When J.R. Tenten invests cash and equipment into her existing business, it increases the assets of the business (cash and equipment) and also increases the owner's equity (investment) in the business. Therefore, the correct answer is D, which states that the investment will increase assets and owner's equity.

JR Tenten's Investment of Cash and Equipment in Her Existing