Tim Contributes Capital into His Business

question 57

Multiple Choice

Tim contributes capital into his business.The two accounts affected are:

• A) an asset and a liability.
• B) an asset and an equity.
• C) a liability and an equity.
• D) two asset accounts.

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Definitions:

Alcohol

A psychoactive substance commonly found in beverages like beer, wine, and spirits, known for its intoxicating effects.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information in the body.

Depressant

A substance that slows down the nervous system and can lead to decreased alertness, often used to treat insomnia, anxiety, or other mental health conditions.

Stimulant

Substances that increase alertness, attention, and energy by accelerating the activity of the central nervous system.