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The owner invests personal cash in the business.
  • a)
    Assets: Decrease, Liabilities: Decrease, Equity: Decrease
  • b)
    Assets: No Effect, Liabilities: Increase , Equity: No Effect
  • c)
    Assets: No Effect, Liabilities: Decrease, Equity: No Effect
  • d)
    Assets: Increase, Liabilities: No Effect, Equity: Increase
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The owner invests personal cash in the business.a)Assets: Decrease, Li...
The owner invests personal cash in the business.
Assets = what the business has or owns (equipment, supplies, cash, accounts receivable)
Liabilities = what the business owes outsiders (bank loan, accounts payable)
Owner’s Equity = what the owner owns (investment and business profit)
hence,assets increase, liablties, no effect ,equity, increase
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Most Upvoted Answer
The owner invests personal cash in the business.a)Assets: Decrease, Li...
On investing more capital in business assets goes on increase but liabilities has no effect thus correct option D
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Community Answer
The owner invests personal cash in the business.a)Assets: Decrease, Li...
Equity is nothing but owner's capital.That's why equity has increased.Also note that equity is a part of liability.
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The owner invests personal cash in the business.a)Assets: Decrease, Liabilities: Decrease, Equity: Decreaseb)Assets: No Effect, Liabilities: Increase , Equity: No Effectc)Assets: No Effect, Liabilities: Decrease, Equity: No Effectd)Assets: Increase, Liabilities: No Effect, Equity: IncreaseCorrect answer is option 'D'. Can you explain this answer?
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The owner invests personal cash in the business.a)Assets: Decrease, Liabilities: Decrease, Equity: Decreaseb)Assets: No Effect, Liabilities: Increase , Equity: No Effectc)Assets: No Effect, Liabilities: Decrease, Equity: No Effectd)Assets: Increase, Liabilities: No Effect, Equity: IncreaseCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The owner invests personal cash in the business.a)Assets: Decrease, Liabilities: Decrease, Equity: Decreaseb)Assets: No Effect, Liabilities: Increase , Equity: No Effectc)Assets: No Effect, Liabilities: Decrease, Equity: No Effectd)Assets: Increase, Liabilities: No Effect, Equity: IncreaseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The owner invests personal cash in the business.a)Assets: Decrease, Liabilities: Decrease, Equity: Decreaseb)Assets: No Effect, Liabilities: Increase , Equity: No Effectc)Assets: No Effect, Liabilities: Decrease, Equity: No Effectd)Assets: Increase, Liabilities: No Effect, Equity: IncreaseCorrect answer is option 'D'. Can you explain this answer?.
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