Asked by Brenda Fils-Aime on May 22, 2024
Verified
Mary invested cash in her new business. What effect will this have?
A) Increase an Asset and increase a Liability
B) Decrease an Asset and increase a Liability
C) Increase an Asset and increase Owner's Equity
D) Decrease an Asset and decrease Owner's Equity
Owner's Equity
The residual interest in the assets of the enterprise after deducting liabilities, representing the capital owned by the proprietors.
Asset
An economic resource owned or controlled by a person or company, expected to provide future benefits.
Liability
A financial obligation or debt that an entity owes to another that must be paid in the future, such as loans, accounts payable, or mortgages.
- Appreciate the application of the accounting equation in financial transactions.
Verified Answer
Learning Objectives
- Appreciate the application of the accounting equation in financial transactions.
Related questions
If Total Liabilities Increased by $10,000 and the Assets Increased ...
How Does the Purchase of Supplies on Account Affect the ...
A Business Received $10,000 from a Customer in Payment of ...
An Acceptable Variation of the Accounting Equation Is ...
Pat Purchased $8,000 of New Electronic Equipment for Her BJ ...