Asked by
Brooke Giessen
on Nov 15, 2024Verified
What would be the effect on the accounts if the owner invested cash into the business?
A) An asset would be debited and Capital credited.
B) Withdrawals would be debited and an asset credited.
C) An asset would be debited and a revenue credited.
D) A Revenue would be debited and Capital credited.
Invested Cash
Funds that are placed into a business by its owners or shareholders with the expectation of generating profits or income.
Capital
The financial resources or assets owned by an individual or business, often used to generate income or produce goods and services.
Withdrawals
Funds taken out of a business by the owners for personal use.
- Understand the basic accounting equation and how transactions affect it.
- Chronicle the business owner's contributions and disbursements within the firm.
Verified Answer
SB
Learning Objectives
- Understand the basic accounting equation and how transactions affect it.
- Chronicle the business owner's contributions and disbursements within the firm.
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