, The owner invested additional cash in the business.
Select the correct response:
Increase in asset, increase in capital
Increase in one asset, decrease in another asset
Increase in asset, increase in liability
Increase in liability, decrease in capital
Decrease in asset, decrease in capital
Decrease in asset, decrease in liability
Answer (1)
The answer is Increase in asset, increase in capital When the owner invests cash, the business's cash (an asset) increases. The owner's equity or capital also increases because the owner has a greater claim on the assets of the business.
