The investment of cash into the business by the owner would:
A)increase net income.
B)decrease owner's equity.
C)have no effect on liabilities.
D)decrease assets.

Question

Quizplus · Accepted Answer

Investing cash into the business by the owner increases the assets (cash) without affecting the company's liabilities. It does not directly impact net income or decrease owner's equity; instead, it increases owner's equity by increasing the assets.

The Investment of Cash into the Business by the Owner