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irina [24]
3 years ago
9

An investment of cash by stockholders into the business will

Business
1 answer:
arsen [322]3 years ago
5 0

Answer:

Increase shareholder's equity

Explanation:

When investors provide cash(capital) to a business through purchasing the company's shares, this increases the amount of their ownership hence increases the equity. Equity amount is recorded in the balance sheet. Another way a company raises capital is by borrowing debt which increases the amount of its liability.

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