Which of the Following Entries Records the Investment of Cash

question 58

Multiple Choice

Which of the following entries records the investment of cash by John, owner of a sole proprietorship?

• A) Debit John, Capital; credit Cash
• B) Debit Cash; credit John, Withdrawals
• C) Debit John, Withdrawals; credit Cash
• D) Debit Cash; credit John, Capital

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Definitions:

Peak Times

Periods of high demand or activity within a market or service sector, often leading to higher prices or increased waiting times.

Electric Company

A utility company that generates, transmits, and distributes electricity to consumers and businesses.

Tragedy of the Commons

A situation in which individual users of a shared resource act in their own interest, depleting or degrading the common resource.

Negative Externality

A cost suffered by a third party as a consequence of an economic transaction in which they were not involved.