Summary QuestionWhen an owner invests cash in the business, which accounts are used in this tra
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Grado
ACC 205
Institución
Ashford University
When an owner invests cash in the businessQuestionWhen an owner invests cash in the business, which accounts are used in this transaction? Question 1Select one: a. Increasing Cash; increasing Owner's Capital b. Increasing Cash; increasing Owner's Withdrawals c. Increasing Service Revenue; dec...
When an owner invests cash in the business, which accounts are used in this
transaction? Question 1Select one: a. Increasing Cash; increasing Owner's
Capital b. Increasing Cash; increasing Owner's Withdrawals c. Increasing
Service Revenue; decreasing Net Worth d. Increasing Cash; increasing Service
Revenue
Answer & Explanation
The correct answer is: a. Increasing Cash; increasing Owner's Capital
Explanation:
When an owner invests cash in the business, it affects two accounts:
1. Cash Account:
o This account represents the amount of cash the business has on
hand.
o When the owner invests cash into the business, this account
increases because there is more cash available to use.
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