An owner's cash investment in a business creates an asset (cash), a liability (note payable), and equity (owner investments).

Name: An owner's cash investment in a business creates an asset (cash), a liability (note payable), and equity (owner investments).
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An owner's cash investment in a business creates an asset (cash) and equity (owner investments) but does not create a liability (note payable). Liabilities are obligations to third parties, not investments by owners.

An Owner's Cash Investment in a Business Creates an Asset