Home
/
Business
/
2. What is the effect when the owner invests 300 in the business? A. Assets decrease 300 and owner's equity decreases 300 B. Assets increase 300 and owner's equity increases 300 C. Assets increase 300 and owner's equity decreases 300 D. Liabilities increase 300 and owner's equity decreases 300

Question

2. What is the effect when the owner invests
 300 in the business?
A. Assets decrease 300 and owner's equity decreases 300
B. Assets increase 300 and owner's equity increases 300
C. Assets increase 300 and owner's equity decreases 300
D. Liabilities increase 300 and owner's equity decreases 300

2. What is the effect when the owner invests 300 in the business? A. Assets decrease 300 and owner's equity decreases 300 B. Assets increase 300 and owner's equity increases 300 C. Assets increase 300 and owner's equity decreases 300 D. Liabilities increase 300 and owner's equity decreases 300

expert verifiedVerification of experts

Answer

4.0349 Voting
avatar
XavierProfessional · Tutor for 6 years

Answer

B

Explain

When the owner invests money into the business, it increases the owner's equity and the assets of the business by the same amount. This is because the owner's investment is used to purchase assets for the business, whether it be in the form of cash, property, or equipment. Therefore, if the owner invests $300 into the business, it will increase the assets and the owner's equity of the business by$300.
Click to rate:

Hot Questions

More x