What is the effect on assets, liabilities and capital when owner invests cash in his business?

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23-05-2022
Business

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What is the effect on assets, liabilities and capital when owner invests cash in his business?

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deebikamadhivanan deebikamadhivanan · Answer 1 · 2022-05-27T05:06:21+02:00

When a business owner invests or puts in cash in his business, equity increases. so, " assets and owner's equity increase," is the correct answer

What is the effect of investment of cash on Assets and Liabilities?

A cash account is a type of asset account. Stockholders' equity rises as a result of revenue. This balances the accounting equation by increasing both the left and right sides by the same amount.

Check out the link below to learn more about assets-liabilities;

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