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Rudik [331]
3 years ago
14

Mary invested cash in her new business. which effect will this have?

Business
2 answers:
marishachu [46]3 years ago
7 0

The Correct Answer is D) Increase an asset; Increase owners equity

Explanation:

Cash is recorded as a 'Current Asset'. When Mary invested cash in her new business, her 'Current Assets' increased by the amount of cash she invested.

Assets = Liabilities + Equities

In order to balance the above equation, an increase in Assets would result in an increase in the equity with equal proportion.

For Example, Mary invested $1 Million in her new business. The assets and owners equity would increase by $1 Million each.

Licemer1 [7]3 years ago
6 0
Either A or C would be right, because it couldn't be a decrease of the equity.
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