A business owner contributes capital to his business in cash. What is the impact of this transaction

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A business owner contributes capital to his business in cash. What is the impact of this transaction on the financial statements of the business?

Profits increase, owner's equity increases

Assets increase, owner's equity increases

Liabilities decrease, owner's equity increases

Assets increase, owner's equity decreases

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Posted Date: Jan 19, 2024 02:24 AM

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A business owner contributes capital to his business in cash. What is the impact of this transaction

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The detailed answer for the above question is provided below The correct answer is Assets increase o... View the full answer

Intermediate Accounting

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