Question

Owner's investment in the business is recorded as a liabiliy.​

Answer 1

Answer:

Another way of lowering owner's equity is by taking a loan to purchase an asset for the business, which is recorded as a liability on the balance sheet. The value of owner's equity may be positive or negative. A negative owner's equity occurs when the value of liabilities exceeds the value of assets.

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Answer 2

ANSWER

Another way of lowering owner's equity is by taking a loan to purchase an asset for the business, which is recorded as a liability on the balance sheet. The value of owner's equity may be positive or negative. A negative owner's equity occurs when the value of liabilities exceeds the value of assets.