Question

In a business both assets and owner's equity can be increased by

Answer 1

The relationship between assets and owner’s equity is given as:

Assets = Liabilities + Owner’s Equity

In a business, both assets (cash) and owner’s equity (capital) can be increased by the same amount when additional capital is introduced into the business by the owner or proprietor.

Answer 2

The simplest answer is that :”  When the capital introduced by the owner himself” or  “owner investment of cash in the business”

Actually the assets is the sum of  liabilities and owner equity So when the assets increase that means the owner equity also increase this result can e achieved on additional capital is introduced or by the investment of the owner . Also the owner equity can also e increase by the revenue earned  on the other hand expenses and owner drawing result in the decrease of the equity