An owner makes an investment of cash into the business. This transaction would include a:
A) debit to Common Stock and a credit to Common Stock.
B) debit to Cash and a credit to Common Stock.
C) debit to Retained Earnings and a credit to Cash.
D) debit to Common Stock and a credit to Retained Earnings.

Question

Quizplus · Accepted Answer

When an owner makes an investment of cash into the business, the business receives cash, and the owner receives shares of the company's common stock. Therefore, the correct transaction would be a debit to Cash and a credit to Common Stock.

An Owner Makes an Investment of Cash into the Business