receives $$12,900$ from the owner to establish a proprietorship, the accounting equation would be:

Choice

Assets decrease $$12,900$ and equity decreases $$12,900.$

Assets increase $$12,900$ and liabilities decrease $$12,900.$

Assets increase $$12,900$ and liabilities increase $$12900.$

Liabilities increase $$12,900$ and equity decreases $$12,900.$

If a company receives $$12,900$ from the owner to establish a proprietorship, the effect on the accounting equation would be:

Multiple Choice

Assets decrease $$12,900$ and equity decreases $$12,900.$

Assets increase $$12,900$ and liabilities decrease $$12,900.$

Assets increase $$12,900$ and liabilities increase $$12,900.$

Liabilities increase $$12,900$ and equity decreases $$12,900.$