When the owner invests equipment in a business,
A)assets and owner's equity increase.
B)assets and revenue increase.
C)liabilities decrease and owner's equity increases.
D)assets increase and owner's equity decreases.

Question

Quizplus · Accepted Answer

When the owner invests equipment in a business, the assets of the business increase because equipment is considered as an asset. At the same time, since the owner has invested the equipment, the owner's equity in the business also increases. Therefore, both assets and owner's equity increase in this scenario.

When the Owner Invests Equipment in a Business