Both assets and Owner's equity would be increased by _________ ?
1. capital brought in
2. Purchase of an asset on credit
3. Payment of creditors
4. Proprietors drawings
Answers
Answered by
9
If owner invest his personal assets in business then assets and owners equity will be increased.
Answered by
11
Capital brought in will increase both assets and owners equity.
Since, Assets = Liability + Capital
As capital brought will increse asset side(cash or tangible asset) and at the same time capital will increse by same amount
Since, Assets = Liability + Capital
As capital brought will increse asset side(cash or tangible asset) and at the same time capital will increse by same amount
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